Alcoa Says Trump Tariff Added $115 Million in Aluminum Costs

SEATTLE (Scrap Monster): Alcoa Corp., the largest US aluminum producer, said tariffs on imports from Canada cost it $115 million in the second quarter, showing how US President Donald Trump’s trade agenda has affected the industry. 

The company redirected Canadian produced aluminum to customers outside the US to mitigate additional tariff costs, it said Wednesday while reporting earnings that beat analyst estimates. 

 Alcoa shares rose as much as 6.4% Thursday in New York, the biggest intraday increase since June 26.

Metal producers are navigating the trade tumult Trump created after raising import tariffs on steel and aluminum, first to 25% in March and then to 50% in June, in an effort to revive domestic production. 

Alcoa’s latest toll from tariffs is about six times more than in the first quarter when the Pittsburgh-based firm said the levies, which were then 25%, had cost it an additional $20 million. Mining giant Rio Tinto Group also revealed Wednesday that its Canada-made aluminum generated costs of more than $300 million in the first half due to the tariffs. 

Alcoa has had extensive conversations with administrations on both sides of the border, including directly with Trump, Alcoa Chief Executive Officer William Oplinger said on a call following the earnings report. 

Oplinger has repeatedly warned US customers will bear the costs of tariffs on aluminum producers.

“While we’re not particularly thrilled with the tariffs,” he said, “our customers are paying significantly higher for aluminum in the United States than anywhere else in the world.”

 Courtesy: www.msn.com