Quebec aluminum producers struggle with U.S. tariffs

theglobeandmail.com

Quebec's aluminum producers are struggling due to new tariffs imposed by the U.S. government. About 1,700 companies in Quebec shape aluminum into various products, but they are now facing significant challenges. The 25% tariffs on Canadian aluminum and steel, which took effect on March 12, have created a tough environment for these manufacturers. Many companies that once thrived are now in distress. Industry leaders warn that American tariffs are severely impacting their ability to compete. Some workers have been laid off or had their hours cut as businesses lose contracts with U.S. clients. The tariffs affect both primary aluminum and finished products, increasing costs and creating uncertainty. For example, Bousquet Technologies, a company that builds aluminum ventilation systems, has seen a decline in orders from U.S. customers. CEO Michel-André Lamarche is adapting his strategy by trying to lower prices and reorganize supply chains to avoid tariffs. He notes that the situation is grim, but he is determined to maintain market share despite the challenges. Similarly, Cyrell AMP, which specializes in custom aluminum panels, has experienced a slowdown in U.S. business due to customer concerns about rising costs. The company has implemented cost-saving measures, including staffing cuts and a delayed expansion plan. Employees are feeling the pressure, with some finding side jobs to make ends meet. ALU MC3, another manufacturer, has also felt the impact of tariffs. The owner, Bruno Montgrain, emphasizes the complex nature of the aluminum supply chain, where metal can cross borders multiple times before it becomes a final product. He is exploring ways to find relief from tariffs but is cautious about pursuing new contracts in such an uncertain environment. Overall, Quebec's aluminum industry is facing tough times. The tariffs are creating a ripple effect, challenging businesses to adapt quickly while navigating a shifting market landscape.


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