Ottawa — The Canadian federal government has entered emergency talks with global mining giant Rio Tinto, aiming to provide liquidity support in response to newly reimposed U.S. tariffs on Canadian aluminum and steel.
Industry Minister Mélanie Joly confirmed the negotiations late Friday, following reports that Quebec’s aluminum production—largely centered in Saguenay–Lac-Saint-Jean—has already experienced operational slowdowns and financial strain.
“These tariffs are unjust and economically damaging,” said Joly. “We’re working closely with industry leaders like Rio Tinto to ensure Canadian jobs and facilities remain secure during this disruption.”
🇺🇸 U.S. Tariffs Disrupt Key Sector
The move comes after the United States, under renewed protectionist policies, reintroduced tariffs on Canadian metal exports, citing "unfair pricing advantages" and "national interest."
Rio Tinto, which operates some of North America’s largest aluminum smelters in Quebec, says the tariffs are already affecting supply chains, order fulfillment, and investor confidence.
“This isn't just about aluminum—it’s about regional stability and Canada’s role in the North American manufacturing economy,” said an unnamed Rio Tinto executive.
Federal Support in Motion
While specific dollar figures were not disclosed, officials confirmed Ottawa is considering a liquidity assistance package, including:
- Emergency working capital loans
- Supply chain subsidies
- Temporary tax relief measures
The aid is expected to help Rio Tinto maintain output, retain skilled workers, and avoid layoffs.
🧊 Chilling Effects on Global Trade
Economists are warning that the latest U.S. tariffs may escalate into a wider trade rift, especially as the United States simultaneously challenges Canada’s EV subsidy programs and digital service taxes.
Meanwhile, Prime Minister Mark Carney has called for a “coordinated, calm, and firm” response to the growing economic friction between Ottawa and Washington.