US aluminium tariffs added $300m in costs in H1, says Rio Tinto
Diversified metals and mining company Rio Tinto incurred about $300-million in gross costs tied to US aluminium tariffs on Canadian product during the first half of 2025, the firm reported on Wednesday.
While a “substantial part” has been offset by higher premiums on US sales when the 25% tariff was introduced in March, the premium could no longer fully compensate when the Trump administration last month doubled tariffs on Canadian aluminium to 50%.
US duties on steel and aluminium have drawn sharp criticism from the Aluminium Association of Canada (AAC), which warned in June that the hike could destabilise supply chains and redirect trade to other regions, including the EU.
“A 50% tariff on Canadian aluminium will suppress demand across the continent,” said AAC CEO Jean Simard in a June 4 statement. “It will impact workers on both sides of the border and disrupt key sectors including defence, construction and automotive.”
The AAC has warned that the tariff rate of $1 349.50/t renders Canadian exports to the US economically unviable.
The Trump administration argues that the tariff increases are intended to secure the future of US industry. Last week, President Donald Trump also announced a 50% tariff on copper, set to take effect on August 1.
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