Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeMiningRio Tinto's aluminum exports to U.S. rebound to pretariff levelsCanada is the biggest foreign supplier of aluminum to the U.S., accounting for 44 per cent of imports across the borderAuthor of the article:Last updated 0 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Soaring U.S. prices due to Trump’s tariffs and tight North American supplies have created a windfall for producers like Rio Tinto. Photo by Peter J. Thompson/PostmediaOne of the world’s largest aluminum producers, Rio Tinto Group, says its shipments of the lightweight metal to the United States have bounced back to levels from before President Donald Trump’s tariff offensive.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe White House has hiked the levy on the metal to 50 per cent last year, pushing Rio Tinto to sell more of its Canadian-produced aluminum in the European market. In turn, North America shipments — headed mostly to the U.S. — fell to the mid-60 per cent range. Flows are now back to about 80 per cent, the producer’s aluminum chief said.“We progressively came back to the pretariff situation — meaning the U.S. represents the vast majority of our sales from Canada today,” Jérôme Pécresse, who heads Rio’s aluminum business, said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againCanada is the biggest foreign supplier of aluminum to the U.S., accounting for 44 per cent of imports to its southern neighbour last year. Soaring U.S. prices due to Trump’s tariffs and tight North American supplies have created a windfall for producers like Rio Tinto and Alcoa Corp. About a third of Rio Tinto’s global output of the lightweight metal is from Quebec, where an abundance of cheap hydroelectric power is an industry draw.The Iran war has added further pressure on the market for the metal, with producers in Gulf states idling smelters due to damage and the inability to ship materials through the Strait of Hormuz.“There is probably 2.5 million ton capacity in Middle East, which is offline,” Pécresse said. The crisis, he added, has led to a marginal increase in sales to Europe from Canada, Australia and New Zealand, while demonstrating “the importance for the U.S. to have a nearby source of very competitive low carbon aluminum.”The so-called U.S. Midwest premium — the amount added to global price benchmarks to deliver the metal to that region — has nearly tripled since early June of last year.Pécresse said despite the surging premium, demand remains high.At the same time soaring U.S. electricity costs amid a massive data centre buildout have given producers like Rio little incentive to build a new primary aluminum smelter in the U.S. That’s stymied President Trump’s hopes that tariffs would revive domestic metals production.“Data centres can probably pay their electricity at two- to three-times the price you need to build a competitive smelter,” Pécresse said. “The reason we’re producing in Canada and Quebec today is because of the competitiveness of hydropower costs.”While Rio has no plans to build U.S. smelters, last year Emirates Global Aluminum confirmed plans to build the first new aluminum plant in the U.S. since 1980. U.S. producer Century Aluminum Co. joined as a partner in January for the new facility in Oklahoma, with construction expected to start by the end of the year.Instead, Rio is focusing its North American aluminum efforts in Canada, where the producer started operations at its AP60 smelter expansion in Quebec’s Saguenay—Lac-Saint-Jean region on Friday.The US$1.5 billion expansion will offset the loss of production associated with the idling of older smelting pot rooms nearby. The area includes an alumina refinery, four smelters and six hydroelectric power plants.—With assistance from Yvonne Yue Li. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.