President Donald Trump's plan to impose a 25% tariff on all imported aluminum has raised concerns about potential job losses in the American aluminum industry. The CEO of one of the largest US aluminum makers warned that such a tariff could cost 100,000 American jobs. The aluminum industry directly employs 164,000 workers in the US and indirectly supports an additional 272,000 jobs in industries like mining, construction, and manufacturing, according to the Aluminum Association.
Alcoa, a prominent American aluminum producer, has expressed worries about the impact of the tariffs. CEO William Oplinger cautioned that the tariffs could lead to the elimination of about 20,000 direct US aluminum industry jobs and a further 80,000 indirect job losses. Alcoa, headquartered in Pittsburgh, has significant aluminum production in Canada, which is then shipped to the US. The company is advocating for an exemption on Canadian metal exports to the US to mitigate the potential job losses.
Canada plays a crucial role in the aluminum industry, being the top source of aluminum imported by the US. In 2021, Canada shipped $11 billion worth of raw aluminum and aluminum-containing goods to the US. The US relies on foreign aluminum imports due to countries like Canada having lower energy costs for production, as highlighted in a report by the Congressional Research Service.
Companies like Coca-Cola are already strategizing in response to the proposed tariffs. CEO James Quincey mentioned that Coca-Cola is preparing to shift more of its packaging to plastic and glass to avoid higher input costs if the tariffs are implemented. This shift could potentially lead to job losses at canning facilities that work with Coca-Cola.
The White House has not yet responded to requests for comments on the potential impact of the aluminum tariffs.
