“We would be optimizing our global system based on any new tariff structures … there is a potential for metal to come out of Australia and go into US if there is a massive tariff dislocation,” Oplinger told Reuters.
The company produces 2.2 million metric tons of aluminum per year, of which 900,000 metric tons are manufactured in Canada. A majority of the Canadian output goes to the United States.
Earlier this week, Trump said he was thinking about imposing 25% duties on imports from Canada and Mexico on Feb. 1.
Alcoa would likely reroute its Canada-made aluminum to Europe to avoid any potential tariff, Oplinger said.
“If there is 25% tariff on Canadian metal, and only 10% on non-Canadian metal, that differential will attract metal into the US from the Middle East and India.”
Any potential tariff will add about $1.5 billion to $2 billion in costs for aluminum consumers in the United States, Oplinger…
