Key Takeaways
- Alcoa CEO William Oplinger said Tuesday he believes President Donald Trump’s proposed tariffs on aluminum and steel would result in fewer US jobs in the sector.
- Alcoa produces aluminum in Canada and the US. Oplinger said he was unsure if the company would invest in increasing US production because of the tariffs.
- Oplinger said Alcoa estimates the tariff would result in about 100,000 fewer jobs in and around the aluminum industry.
Alcoa (AA) CEO William Oplinger said Tuesday that his aluminum-manufacturing company believes tariffs proposed by President Donald Trump will hurt the industry.
“We’re clearly advocating based on the fact that this is bad for the aluminum industry in the US,” Oplinger said at a conference, according to a transcript provided by AlphaSense. “It’s bad for American workers.”
Oplinger on Tuesday said Alcoa would likely face a 35% combined tariff because of the 10% tariff on energy or critical mineral goods coming from Canada and a 25% tariff on steel and aluminum set to go into effect March 12. The first round of Trump’s tariffs on Canada and Mexico were delayed by a month and are set to begin March 4.
“I don’t have updated numbers for a 35% tariff, but we have a view that [a] 25% tariff will destroy about 20,000 direct U.S. aluminum industry jobs and could result in 80,000 indirect jobs being eliminated in the US,” Oplinger said.
The US imports about 4 million metric tons of aluminum annually, Oplinger said, 2.8 million of which come from Canada, where Alcoa has production facilities. Aluminum has a range of large- and small-scale industrial uses.
Oplinger said the company is still assessing whether to invest in increasing US production because Alcoa makes investment decisions with a “horizon of 20 to 40 years” and the tariffs will likely be be in place for a shorter time.
Alcoa shares, down nearly 2% on Tuesday, are up roughly 35% over the past 12 months.
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