The pressure of American tariffs is enormous, prompting Quebec aluminum exporters to find alternative routes through Europe.

Due to the impact of the increase in U.S. tariffs, aluminum producers in Quebec, Canada have seen a significant increase in the cost of exporting aluminum products to U.S. customers. As a result, they are diverting more aluminum products, used for making cans and automobile parts, to the European market. Data from S&P Global Market Intelligence shows that in the second quarter of this year, the U.S.'s share of aluminum exports from Quebec decreased from 95% in the first quarter to 78%, while Europe's share increased from 0.2% to 18%. This data once again confirms the destructive impact of tariffs on the circulation of goods in the highly integrated North American market. President Donald Trump first reinstated a 25% tariff on aluminum imports in March, and then doubled the rate to 50% in June. Rio Tinto plc Sponsored ADR, Alcoa Corporation, and Aluminerie Alouette Inc. all have large processing plants in Quebec, accounting for about 90% of the total aluminum production capacity in Canada. Due to its proximity, the U.S. was naturally a major buyer of aluminum products from Quebec. While Rio Tinto plc Sponsored ADR and Alcoa Corporation have yet to respond to inquiries about export data, Bloomberg reported last month that since the 50% high tariff came into effect, Rio Tinto plc Sponsored ADR has reduced its exports of aluminum to the U.S. and instead sources aluminum products from competitors to resell to U.S. customers. Rio Tinto plc Sponsored ADR owns a 40% stake in the largest aluminum smelter in North America, Aluminerie Alouette, which confirmed by email that the proportion of aluminum products shipped to Europe has increased from 4% to 57%. The company stated, "Shareholders are continuously exploring new alternative solutions to mitigate the current situation and maintain the long-term competitiveness of Aluminerie Alouette." Jean Simard, President of the Aluminium Association of Canada, told reporters in Montreal on Monday that the European market has provided a "buffer" for Canadian aluminum producers this summer, helping them avoid potential losses in the U.S. market. "The choice is simple: ship as much as possible to Europe," Simard said. "With aluminum prices gradually rising in the U.S. market, aluminum products are likely to flow back to the U.S. market in the future." The tariffs imposed by the Trump administration have led to domestic aluminum prices in the U.S. far exceeding global benchmark prices. The so-called "Midwest Premium" (the additional cost for aluminum products shipped to the region on top of the global benchmark price) has surged by 82% since early June. Jason Kaplan, a metals analyst at S&P Global, pointed out, "The market had previously been concerned that Chinese aluminum products might shift to Europe, but in fact, it may be Canadian aluminum products that are now seizing the European market."