Canadian aluminium producers have redirected approximately 800,000 tonnes of metal to Europe since March 2025 as a 50% US import tariff reshapes established trade flows.
Aluminium Association of Canada CEO Jean Simard told The Canadian Press that comparable European shipments would total about 100,000 tonnes under normal market conditions.
Canada produces approximately 3.3 million tonnes of aluminium annually and exports about 90% of its output, historically mostly to the US.
The country’s main primary producers — Rio Tinto (ASX:RIO), Alcoa (NYSE:AA), and privately held Aluminerie Alouette — initially continued supplying US customers after tariffs took effect before redirecting metal to Europe.
Washington imposed a 25% tariff on Canadian aluminium in March 2025 before doubling it to 50% in June.
The Bank of Canada says aluminium exports initially fell sharply, reaching 50% below 2024 levels by July 2025. Producers then redirected sales to Europe at lower margins, while shipments to the US recovered as US inventories declined.
Simard says the European shipments have allowed primary producers to maintain output without production cuts or layoffs.
He also believes the US midterm election results could increase political pressure for tariff relief.
“I’m certainly far more optimistic than I’ve ever been, because the signal is overwhelmingly clearer than I thought it would be,” Simard says.
Tariff relief could squeeze European supply
However, a US-Canada trade deal could reverse part of the shift. In a Reuters analysis, metals columnist Andy Home says lower US tariffs could draw Canadian metal away from Europe and place upward pressure on European premiums.
European buyers have increasingly relied on Canadian supply amid the phase-out of Russian aluminium and disruptions affecting other producers.
The trade upheaval comes as Canada backs aluminium-processing projects operated by Rio Tinto and Aluminerie Alouette in Québec, as previously reported by Mining.com.au.
Write to France Pinzon at Mining.com.au
Main image: Aluminerie Alouette
