Joly expects aluminum sector to receive 'hundreds of millions' in tariff relief

Industry Minister Mélanie Joly says Quebec's aluminum sector is likely to receive "hundreds of millions of dollars" from a $5 billion fund to help sectors slammed by U.S. tariffs.

Nearly all of Canada's aluminum is produced in Quebec. Joly said Monday the federal government hasn't determined yet exactly how the tariff support fund will be divided.

"The Quebec aluminum sector will get its fair share. And we believe that with the projects that are being discussed right now with Alcoa, with Rio Tinto and with Alouette, it's hundreds of millions of dollars," Joly told a press conference in Montreal on Monday.

Canadian aluminum and steel exports currently face 50 per cent U.S. tariffs.

Jean Simard, president of the Aluminum Association of Canada, joined Joly at the press conference and said that tariff relief is about ensuring the sector remains competitive on the world stage.

While Canada does have aluminum markets in Europe and Asia, the vast majority of the metal produced here is exported to the U.S., Simard said.

"We produced 3.3 million tonnes of metal in 2024, which is our biggest year ever. We exported 90 per cent of that, and 90 per cent of that 90 per cent was going to the U.S.," he said.

Simard said that aluminum producers shipped more product to Europe over the summer because they were losing money on exports to the U.S.

He also said that while the Canadian aluminum sector is eyeing future growth in European and Asian markets, it can't fully cut ties with the U.S. market.

He added that if Canadian producers were to stop shipments to the U.S., other companies would take their place.

"As the price builds up into the U.S., you can expect metal to come back to the U.S. market," he said.