American customs tariffs cost $ 408 million in Rio Tinto

American customs tariffs on aluminum cost $ 408 million Canadian dollars in Rio. Consequently, Tinto in the first quarter only. Furthermore, The multinational, however, was able to compensate for the majority of these costs by passing the bill to its customers. However, the situation becomes unbearable for Canadian processors.

The multinational revealed this data in its latest quarterly report. For example, In the first quarter. Moreover, when 25 % American prices hit the industry, the bill reached 408 million US dollars (300 million US dollars) for Rio Tinto, to export its primary aluminum to the United States.

Rio Tinto. however, was able to largely mop these losses by passing the bill to its customers, thanks to the increase in the Midwest premium, which fixes the sale price of aluminum in North America and Central America.

This regional premium aims american customs tariffs cost $ to reflect aluminum production costs on the American market, including in particular transport costs. Meanwhile, The Midwest premium. Meanwhile, which is added to the basic price of aluminum fixed on the London metal market (LME), quickly increased to include American customs tariffs. Moreover,

The price of aluminum actually jumped to North America shortly after the entry into force of the prices. Similarly, explains the senior economist at Desjardins, Marc-Antoine Dumont. Moreover,

What we have seen is the price of aluminum in the United States increased sharply. However, while the world price of aluminum has remained relatively stable. Nevertheless, What it shows us here is that supply in the United States is very limited, compared to demand. These price movements disadvantage the North American markethe explains.

At the end of the second quarter. Rio Tinto noted, however, that the increase in the Midwest bonus did not fully compensate for customs duties on aluminum which climbed 50 % at the beginning of June.

According to the global S&P firm. which is the reference in the community, the Midwest premium reached a record level at the end of February, on the eve of the 25 %tariffs. She shattered american customs tariffs cost $ a new record when the prices doubling in June.

Rio Tinto exports 80 % of its aluminum production in the United States. The multinational refused to grant an interview or to comment on the situation.

American customs tariffs cost $

Canadian processors who pay customs tariffs

If Rio Tinto manages to pass on most of the invoice to its customers. the situation is however different for aluminum transformers in Canada.

They find themselves paying the American customs tariffs, even on Canadian soil. Transformers are therefore forced to pay aluminum at the cost of the Midwest bonus. which sets its price on the continent, regardless of where it is purchased.

Jonquière’s blocist deputy, Mario Simard, deplores the situation.

Rio Tinto arrives. via the Midwest bonus, to push american customs tariffs cost $ the price to its customers, which is not the case for transformers, who must assume part of the premium, because their customers refuse to pay the exorbitant amounts who are associated with the premium. So, it creates pressure on these companies, which is enormous and which is undue.

Faced with the trade american customs tariffs cost $ war, transformers demanded assistance from the federal government in June, alongside Quebec Bloc. They hope to obtain support drawn from the counters imposed in Washington by Ottawa in March.

The situation becomes unbearable for certain transformers, reports the president and chief executive officer of PCP aluminum, Michel Lavoie. The company located in Baie, in Saguenay, specializes in the production of aluminum flowing plates.

Currently. the situation, it is not livable, at 50 %, by the fact that there is no one who has a room for maneuver of 50 % to give for nothing. It makes no sense. The month of August will be really a key month. if there are negotiations which will make it make that we will be able to continuehe says.

Last week. support measures were announced by the federal government for the steel industry, which is affected by the same american customs tariffs cost $ rates as aluminum.

American customs tariffs cost $

Invest in the United States

If the negotiations between Prime Minister Mark Carney. US President Donald Trump do not bear fruit, Mr. Lavoie stresses that difficult decisions will have to be made.

If it is livable. there is a continuity, then if it is not livable, after that, it will be decision -making. Decisions at that time are: we stay here. with a price that is acceptable or we look at other options, which may even be the move.

He does not explain to stop investing in his installations in the bay in order to invest in the United States rather.

Lighten the burden of transformers

In the context of the trade war. the deputy Mario Simard believes that Ottawa and Rio Tinto should study the situation, in order to find ways to lighten the burden of transformers.

It could be a question on which the government should look into the context of the tariff crisis. And again. american customs tariffs cost $ it is not against Rio Tinto, it is simply that this vast hydroelectric potential that we have to benefit of course in Rio Tinto, but it must benefit the whole region. And, in this sense, it would be good to support our aluminum transformershe says.

He also believes that the creation of an independent observatory on aluminum. as the Bloc Québécois has been claiming for a few years, would also make it possible to better understand the situation.