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Key Highlights
- William Oplinger, the Chief Executive Officer of Alcoa, mentioned on Tuesday that he fears the tariffs on aluminum and steel suggested by President Trump will diminish employment prospects in the U.S. manufacturing sector.
- Alcoa manufactures aluminum in both Canada and the United States. Oplinger conveyed doubts regarding the company’s potential to boost investments in the U.S. as a result of the tariffs’ effects.
- He also indicated that Alcoa expects the tariffs could result in a reduction of around 100,000 jobs in the aluminum industry and its associated areas.
William Oplinger, CEO of Alcoa (AA), stressed on Tuesday that his aluminum production firm believes the suggested tariffs by President Trump will adversely impact the entire sector.
During a conference, Oplinger remarked, “We are unequivocally opposing this, as it is harmful to the U.S. aluminum sector and detrimental to American employees,” based on records from the meeting provided by AlphaSense.
Oplinger highlighted that Alcoa could encounter a total tariff of 35%, which includes a 10% tariff on energy or essential mineral products from Canada, alongside a 25% tariff on steel and aluminum set to commence on March 12. The first phase of tariffs on Canada and Mexico has been postponed by a month and will begin on March 4.
He noted, “I do not possess the most recent information regarding the 35% tariff, but we estimate that the 25% tariff will eliminate roughly 20,000 direct jobs in the U.S. aluminum sector and could potentially cause the loss of 80,000 indirect jobs.”
Oplinger also mentioned that the U.S. imports around 4 million tons of aluminum annually, with 2.8 million tons coming from Alcoa’s production sites in Canada. Aluminum has numerous widespread and specialized uses in various industries. Thriving & Declining Real Estate Markets: An Examination of American House Values
He expressed that the company is still assessing whether to enhance investments in the U.S., as Alcoa’s investment choices typically take into account a timeframe of 20 to 40 years, while tariffs might only be in effect for a shorter duration.
The shares of Alco Corporation decreased by almost 2% on Tuesday; however, it has increased roughly 35% over the last twelve months.
