Alcoa (AA) Chief Executive Bill Oplinger said Tuesday that a 25% aluminum tariff would negatively impact the US aluminum industry, potentially eliminating 100,000 jobs, while also harming the company's Canadian operations.
A "25% tariff will destroy about 20,000 direct US aluminum industry jobs and could result in 80,000 indirect jobs being eliminated in the US." Bill Oplinger said at the BMO Global Metals, Mining & Critical Minerals conference, according to a FactSet transcript.
Alcoa's Canadian operations, which supply 700,000 tons of aluminum to the US, could be negatively affected if their tariff exemption changes, while US facilities would benefit from higher Midwest aluminum prices, Oplinger said, adding that this situation, still uncertain and slated for possible March implementation, raises significant concerns due to the US's heavy reliance on Canadian aluminum.
The proposed tariffs could incentivize illogical trade flows, with metal being diverted to Europe while other global sources fill the US deficit, Oplinger said. He said the company is actively advocating against the tariffs, emphasizing their negative impact on the US aluminum industry and American workers.
AA shares were down 1.6% in recent trading.
Price: 34.47, Change: -0.55, Percent Change: -1.57
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.