Canada has discussed offering financial support to large aluminum producers, including Rio Tinto, if Washington's 50% tariff on imports of the metal persists in the medium term. Jean Simard, CEO of the Aluminium Association of Canada, stated that early talks could help the sector if a planned deal with the U.S. is not reached by July 21. This potential government intervention aims to mitigate the impact of trade disputes.
While major aluminum producers operating in Canada do not currently face liquidity problems, a sustained 50% U.S. tariff would inevitably affect their finances. The Canadian government's consideration of financial support underscores the strategic importance of the aluminum industry to its economy. This proactive measure seeks to protect domestic producers.
For Rio Tinto, which has significant aluminum operations in Quebec, this potential financial backing could provide a crucial buffer against the adverse effects of U.S. tariffs. It demonstrates a commitment from the Canadian government to support key industries facing external trade pressures. The outcome of these discussions will be material to Rio Tinto's Canadian aluminum business.
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