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Canada discusses financial support for aluminum producers

amid

U.S. tariffs

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Aluminum Association of Canada CEO highlights potential

financial impact of tariffs

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Half of U.S. aluminum imports come from Canada, majorly

affected

by tariffs

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Trump's tariff hike aims to boost U.S. domestic production

MONTREAL, July 5 (Reuters) - Canada has discussed

offering financial support to large aluminum producers like Rio

Tinto impacted by a U.S.-led trade war, in the event

that Washington's 50% tariff on imports of the metal persist in

the medium term, the CEO of a key industry trade group said on

Saturday.

Aluminium Association of Canada CEO Jean Simard told

Reuters in an interview that the early talks could help the

sector in the event that Ottawa is unable to reach a planned

deal with its key trading partner by July 21.

While the major aluminum producers operating in Canada do not

have liquidity problems, Simard said, a 50% U.S. tariff on

aluminum imports would inevitably have an impact on finances if

it continues.

"It's part of a larger discussion where everything is on the

table," Simard said, adding that no decision has been reached.

"With the 50% tariff in effect since June 4, it's normal that

there are discussions, among other things, about the impact on

businesses' liquidity if the situation persists over time."

Around half of all aluminum used in the U.S. is imported,

with the vast majority coming from Canada, which exported 3.2

million tons of the metal to the United States last year.

Simard's comments follow media reports late Friday in which

federal industry minister Mélanie Joly said the government is

having conversations with Rio Tinto about providing financial

assistance due to the crushing U.S. tariffs. Joly was said to

have mentioned the talks during a meeting on Thursday with

business leaders in Quebec's Saguenay region, a significant hub

for aluminum production also known as Canada's Aluminum Valley.

Rio Tinto declined comment on Saturday. A spokesperson for

Joly was not immediately available for comment.

U.S. President Donald Trump doubled tariffs on steel and

aluminum imports to 50% last month, stepping up pressure on

global steel producers and deepening his trade war, to support

domestic production of the vital materials for construction.