Alcoa: Tariffs on China will increase its annual costs by more than $10 million
April 17, 2025
Alcoa CEO William Oplinger said on an earnings call: "About 70 percent of the aluminum we produce in Canada is sold to U.S. customers and is now subject to a 25 percent tariff... Currently, our annual net profit is about $100 million."
Tariffs on Canadian imports have cost Alcoa about $20 million in the first quarter ended March 31.
Alcoa, which sources some of its materials from Chinese suppliers, expects high U.S. tariffs on China to add $10 million to $15 million to its annual costs due to "the absence of suitable alternative suppliers."
Referring to current U.S. capacity, Oplinger said that even if all idle smelting capacity is restarted, the United States will still face a gap of 3.6 million tons. "Until the US adds smelting capacity, the most efficient aluminium supply chain is Canadian aluminium coming into the US," he adds.
