Alcoa Faces Cost Surge Due to US Tariffs on Chinese, Canadian Aluminum Imports

Published: Apr 23, 2025 18:05

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Alcoa recently stated that the hefty tariffs imposed by the US on China would increase the company's annual costs by $10 million to $15 million, as some materials are sourced from Chinese suppliers with no alternative options. Alcoa's CEO, Roy Harvey, mentioned that even if all idle smelting capacity is restarted, the US would still face a shortfall of 3.6 million mt. Before increasing smelting capacity in the US, sourcing aluminum from Canada is the most effective supply chain solution. It was reported that Alcoa indicated the tariffs on aluminum imports from Canada are expected to cause the company a loss of approximately $90 million in Q2. Harvey noted during the earnings call that about 70% of the aluminum produced by the company in Canada is sold to US customers, now subject to a 25% tariff, which has already resulted in a loss of around $20 million in Q1. (CCTV News Client)

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