US aluminum producer Alcoa projected a US$90 million cost in the current quarter due to US tariffs on Canadian aluminum, adding to the US$20 million impact in the first quarter of the year.

The tariffs, along with those on Chinese imports, were expected to increase Alcoa's annual costs by US$10 million to US$15 million. CEO William Oplinger said that around 70% of Alcoa's aluminum produced in Canada goes to the US and is now facing a 25% tariff, resulting in a net annual negative impact of around US$100 million. He emphasized the necessity of Canadian aluminum for the US market due to insufficient US smelting capacity.

Despite these challenges, Alcoa's net income soared by 171% to US$548 million in the first quarter of this year, and adjusted EBITDA increased by 26% to US$855 million.