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Released June 23, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's aluminum and steel producers offered mixed reactions to Prime Minister Mark Carney's response to U.S. President Donald Trump's most recent tariff increase. Seeking "to build the strongest economy in the G7," Carney's administration on Thursday announced a host of measures to protect Canada's Metals & Minerals Industry, including a vow to respond with its own package of tariffs if a deal is not reached in the coming weeks. Industrial Info is tracking more than US$3 billion worth of projects related to aluminum development across Canada, as well as more than US$10.4 billion worth related to steel manufacturing.
Earlier this month, U.S. President Donald Trump increased import duties on steel and aluminum from Canada to 50%, from a 25% rate set in March. Last week, Carney said Canada could ratchet up its reciprocal tariffs on U.S.-produced steel and aluminum if the two nations do not reach a deal within 30 days, or July 21. Carney also told reporters that while he and Trump will seek to reach an agreement, Canada would not hesitate to adjust its tariffs "to levels consistent with progress made in the broader trading agreement with the United States" if talks fail.
Jean Simard, the chief executive officer of the Aluminum Association of Canada, said Carney's proposals "strike the right balance between sending a strong signal towards focused and accelerated negotiations and using a measured approach through adaptive counter-tariffs and reciprocal procurement policies."
Click on the image at right for a graph detailing the top 10 parent companies for active and proposed aluminum-production projects across Canada, by total investment value.
But the Canadian Steel Producers Association and United Steelworkers Union were less impressed. In a joint statement, the trade groups said Carney's announcement "falls short of what the industry needs at this most challenging time."
Click on the image at right for a graph detailing the top 10 parent companies for active and proposed steel-production projects across Canada, by total investment value.
The U.S. also has much at risk. Alastair Neill, the executive director of the Critical Minerals Institute (CMI), recently noted more than 80% of primary aluminum consumed in the U.S. is sourced from other countries. "Once the dominant producer of aluminum globally, today the U.S. produces only 1.2% of the world's supply, highlighting its growing dependence on international sources, particularly Canada," Neill said in a piece titled "Why the U.S. Can't Afford to Lose Canada's Critical Mineral Aluminum."
In 2024, Canada supplied more than half of the 4.8 million tons of crude and semi-manufactured aluminum product shipped to the U.S., which itself had a primary aluminum production capacity of 1.36 million tons. "However, [the U.S.] was operating at only 50% of this capacity, resulting in the production of around 680,000 tons of aluminum," Neill said.
Steel, Aluminum Producers Weigh Options
If no agreement on tariffs is reached by July 21, would Europe become a better trading partner for Canada? That's a question facing Rio Tinto (London, England) as it continues work on its US$1.04 billion expansion of its aluminum smelter in Jonquiere, Quebec, the first large-scale capacity addition at a Western aluminum smelter in more than a decade. The company is upping its number of AP60 Pots, which produce low-carbon, high-quality aluminum, from 38 to 134, which will increase capacity from 60,000 to 220,000 tons per year.
In addition to the expansion, Rio Tinto is in the process of closing obsolete tank rooms and refurbishing anode baking furnaces at the site. The company believes these moves will reduce emissions at the complex by more than 50%, aided by a recently completed recycling center, which processes about 30,000 tons per year of aluminum scrap.
"This is the most significant investment in our aluminum business for more than a decade, and it will further strengthen Rio Tinto's high-quality and low-carbon offering to our customers," said Jakob Stausholm, the chief executive officer of Rio Tinto, in a press release. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more from a plant profile and detailed reports on the aluminum expansion, tank room closures, furnace refurbishments and recycling center.
Canada's low-carbon steel producers also could find relief in the European Union, which plans to impose extra duties on carbon-intensive imports starting in 2026. While the U.S. far outpaces Canada in crude steel-production capacity, Canada has the lowest carbon footprint among major producers--and enjoys a cost advantage as well, according to the Anthesis Group, a sustainability advisory firm.
But not all Canadian steel producers would be able to take advantage of such an opportunity, especially those with business already heavily tied to U.S.-based customers. Those producers include Algoma Steel Group Incorporated (Sault Ste. Marie, Ontario), which is in the final stages of the US$560.3 million addition of two electric arc furnaces at its steel mill in Sault Ste. Marie. The company is replacing outmoded furnaces to increase the facility's crude steel-making capacity from 3.4 million to 3.7 million tons per year. Subscribers can learn more from a detailed project report and plant profile.
Michael Garcia, the chief executive officer of Algoma, was among the steel industry leaders who panned Carney's announcement as insufficient. He also said new tariff rate quotas included in Carney's plan will not be enough; Carney proposes limiting imports of foreign steel from countries that don't have free trade agreements (such as China, India and Turkey) to 2024 levels. Garcia told The Globe and Mail those 2024 import levels already accounted for about two-thirds of Canada's steel market.
Carney's administration said the new steel quotas will be applied retroactively and will be reviewed in 30 days.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed project reports for projects related to aluminum development across Canada, and click here for a full list related to steel manufacturing.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Earlier this month, U.S. President Donald Trump increased import duties on steel and aluminum from Canada to 50%, from a 25% rate set in March. Last week, Carney said Canada could ratchet up its reciprocal tariffs on U.S.-produced steel and aluminum if the two nations do not reach a deal within 30 days, or July 21. Carney also told reporters that while he and Trump will seek to reach an agreement, Canada would not hesitate to adjust its tariffs "to levels consistent with progress made in the broader trading agreement with the United States" if talks fail.
Jean Simard, the chief executive officer of the Aluminum Association of Canada, said Carney's proposals "strike the right balance between sending a strong signal towards focused and accelerated negotiations and using a measured approach through adaptive counter-tariffs and reciprocal procurement policies."
Click on the image at right for a graph detailing the top 10 parent companies for active and proposed aluminum-production projects across Canada, by total investment value.But the Canadian Steel Producers Association and United Steelworkers Union were less impressed. In a joint statement, the trade groups said Carney's announcement "falls short of what the industry needs at this most challenging time."
Click on the image at right for a graph detailing the top 10 parent companies for active and proposed steel-production projects across Canada, by total investment value.The U.S. also has much at risk. Alastair Neill, the executive director of the Critical Minerals Institute (CMI), recently noted more than 80% of primary aluminum consumed in the U.S. is sourced from other countries. "Once the dominant producer of aluminum globally, today the U.S. produces only 1.2% of the world's supply, highlighting its growing dependence on international sources, particularly Canada," Neill said in a piece titled "Why the U.S. Can't Afford to Lose Canada's Critical Mineral Aluminum."
In 2024, Canada supplied more than half of the 4.8 million tons of crude and semi-manufactured aluminum product shipped to the U.S., which itself had a primary aluminum production capacity of 1.36 million tons. "However, [the U.S.] was operating at only 50% of this capacity, resulting in the production of around 680,000 tons of aluminum," Neill said.
Steel, Aluminum Producers Weigh Options
If no agreement on tariffs is reached by July 21, would Europe become a better trading partner for Canada? That's a question facing Rio Tinto (London, England) as it continues work on its US$1.04 billion expansion of its aluminum smelter in Jonquiere, Quebec, the first large-scale capacity addition at a Western aluminum smelter in more than a decade. The company is upping its number of AP60 Pots, which produce low-carbon, high-quality aluminum, from 38 to 134, which will increase capacity from 60,000 to 220,000 tons per year.
In addition to the expansion, Rio Tinto is in the process of closing obsolete tank rooms and refurbishing anode baking furnaces at the site. The company believes these moves will reduce emissions at the complex by more than 50%, aided by a recently completed recycling center, which processes about 30,000 tons per year of aluminum scrap.
"This is the most significant investment in our aluminum business for more than a decade, and it will further strengthen Rio Tinto's high-quality and low-carbon offering to our customers," said Jakob Stausholm, the chief executive officer of Rio Tinto, in a press release. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more from a plant profile and detailed reports on the aluminum expansion, tank room closures, furnace refurbishments and recycling center.
Canada's low-carbon steel producers also could find relief in the European Union, which plans to impose extra duties on carbon-intensive imports starting in 2026. While the U.S. far outpaces Canada in crude steel-production capacity, Canada has the lowest carbon footprint among major producers--and enjoys a cost advantage as well, according to the Anthesis Group, a sustainability advisory firm.
But not all Canadian steel producers would be able to take advantage of such an opportunity, especially those with business already heavily tied to U.S.-based customers. Those producers include Algoma Steel Group Incorporated (Sault Ste. Marie, Ontario), which is in the final stages of the US$560.3 million addition of two electric arc furnaces at its steel mill in Sault Ste. Marie. The company is replacing outmoded furnaces to increase the facility's crude steel-making capacity from 3.4 million to 3.7 million tons per year. Subscribers can learn more from a detailed project report and plant profile.
Michael Garcia, the chief executive officer of Algoma, was among the steel industry leaders who panned Carney's announcement as insufficient. He also said new tariff rate quotas included in Carney's plan will not be enough; Carney proposes limiting imports of foreign steel from countries that don't have free trade agreements (such as China, India and Turkey) to 2024 levels. Garcia told The Globe and Mail those 2024 import levels already accounted for about two-thirds of Canada's steel market.
Carney's administration said the new steel quotas will be applied retroactively and will be reviewed in 30 days.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed project reports for projects related to aluminum development across Canada, and click here for a full list related to steel manufacturing.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
