Alcoa reported that the tariffs had already cost the company around $20m in Q1 2025.
The company also reported a $15 million cost related to restarting its San Ciprián smelter in Spain. However, Alcoa anticipates a $165 million reduction in alumina costs within its aluminium segment, providing some financial relief. Additionally, high tariffs on imports from other regions are expected to raise annual costs by $10 million to $15 million, as alternative suppliers have not been identified.
Alcoa’s CEO, William Oplinger, stated during a post-earnings conference call: “Approximately 70% of our aluminium produced in Canada is destined for US customers and is now subject to 25% tariff costs… Currently, the net annual result is approximately $100m negative for our business.” He noted that even if all idle U.S. smelting capacity were reactivated, a 3.6 million tonne shortfall would persist.
Oplinger emphasized the efficiency of Canadian aluminium for the U.S. market, saying: “Until additional smelting capacity is built in the US, the most efficient aluminium supply chain is Canadian aluminium flowing into the country.” Alcoa has been engaging with U.S. and international administrations, policymakers, and industry partners to discuss the tariffs’ impact on trade and the importance of primary aluminium to the U.S. economy.
Despite these challenges, Alcoa’s Q1 2025 financial performance showed strength. Net income rose 171% to $548 million, while adjusted net income increased 106% to $568 million. Adjusted EBITDA, excluding special items, grew 26% to $855 million. The company also worked with customers, suppliers, and logistics firms to ensure supply chain stability.
Alcoa’s efforts reflect its commitment to navigating tariff-related challenges while maintaining operational resilience and supporting the integrated aluminium supply chain in the U.S.
