Canada is considering providing financial assistance to major aluminium producers, such as Rio Tinto, affected by ongoing U.S. tariffs on aluminium imports, according to the head of a prominent industry group. The talks come amid concerns that the 50% U.S. tariff, which has been in place since early June, may continue for the medium term.

The CEO of the Aluminium Association of Canada, Jean Simard, explained that these preliminary discussions aim to help the industry if a resolution with the United States is not reached by the target date of July 21. While Canadian aluminium producers currently maintain healthy liquidity, Simard emphasised that prolonged tariffs at this high level would inevitably strain their financial positions.

“This is part of a broader conversation where all options are being considered,” Simard said, clarifying that no final decisions have been made. He added that it is natural for concerns about cash flow to arise if the tariffs persist.

Nearly half of the aluminium used in the U.S. is imported, with the majority sourced from Canada. Last year, Canada exported approximately 3.2 million tons of aluminium to the U.S.

These remarks come after federal officials disclosed ongoing talks about potential government support for the aluminum industry, especially given the impact of the steep American tariffs. The discussions include key players in regions known for aluminium production, such as Quebec’s Saguenay area.

A representative for Rio Tinto declined to comment. Officials from the Canadian government confirmed that they are actively exploring ways to support the industry amid what they describe as unjustified U.S. tariffs, with a goal to encourage further investment in aluminium production.

Last month, the U.S. administration increased tariffs on steel and aluminium imports to 50%, intensifying trade tensions and aiming to bolster domestic manufacturing of these critical materials.