Why won't cutting U.S. tariffs on Canadian aluminum significantly reduce the Midwest aluminum premium, according to Alcoa's CFO?

According to Alcoa's CFO Molly Beerman, cutting U.S. tariffs on Canadian aluminum alone won't significantly reduce the Midwest premium because the U.S. imports about 4 million tons of aluminum annually, and Canada can supply only 3 million tons — leaving a 1-million-ton gap that must still be filled from other countries subject to tariffs; therefore, even with favorable Canadian tariff treatment, the premium 'might come off a little bit, but we wouldn't see it returning to pre-tariff levels.'

What is Alcoa's current exposure to U.S. aluminum tariffs, and how is the company offsetting those costs?

Alcoa pays more than $1 billion in U.S. tariffs to import most of its ~900,000 tons/year of aluminum produced in Canada, but the elevated Midwest premium fully compensates the company for those tariff costs — and additionally returns margin — due to tight physical supply conditions in the U.S. market.

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Alcoa's CFO warns that halving Canadian tariffs won't significantly reduce U.S. aluminum premiums due to supply gaps. With orders booked through 2026 and constrained global supplies, market tightness is expected to persist.

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Cutting Canada tariffs alone won't flatten US aluminum premium, Alcoa says

Cutting Canada tariffs alone won't flatten US aluminum premium, Alcoa says

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