OTTAWA – Industry Minister Mélanie Joly has announced that the federal government is currently in discussions with Rio Tinto, a major player in the mining and metals sector, regarding financial assistance due to cash flow challenges exacerbated by the United States' global tariffs on steel and aluminum. The situation has prompted concerns within Canada’s aluminum industry, which is crucial to the country’s economy.

During her visit to Saguenay, Quebec, Joly met with local businesses involved in the aluminum sector on Thursday. She disclosed to reporters that these discussions with Rio Tinto began earlier in the week, reflecting the urgency of addressing the economic impact triggered by recent U.S. trade policies.

In May 2025, U.S. President Donald Trump announced a significant increase in economic pressures by doubling the global tariffs on steel and aluminum to an unprecedented 50 percent. This move has far-reaching implications for countries reliant on aluminum production, including Canada, which is one of the top producers in the world.

Prime Minister Mark Carney indicated that Canada is working on its strategic response to these new tariffs. He mentioned that the government would deliver its official stance by July 21, 2025, and that this response would depend on the progress of ongoing discussions between Canadian and American officials. This highlights Canada’s proactive approach to mitigating the negative effects of the trade war on its industries.

Rio Tinto plays a significant role in the Saguenay-Lac-Saint-Jean region, employing approximately 4,000 individuals. The company also has plans to invest in a new $1.4 billion aluminum smelter in the area, which underscores its commitment to the local economy. However, the escalating tariffs pose a significant threat to its operations and future investments.

In response to the situation, Quebec Premier François Legault is poised to announce support measures aimed at bolstering the province's aluminum sector later on the same day. This support is expected to be a vital component of the broader strategy to help the industry withstand the pressures from U.S. tariffs and maintain stability in the local labor market.

This unfolding situation exemplifies the ongoing tensions in international trade relationships, particularly between Canada and the U.S., as both countries navigate the complexities of economic policies and their impacts on local industries. The discussions with Rio Tinto and support initiatives from the provincial government are critical steps toward securing the future of Canada’s vital aluminum sector amid turbulent trade dynamics.