[Hong Kong Economic Journal] Alcoa CEO William Oplinger believes that if U.S. President Trump imposes tariffs on imports from Canada, it will prompt American aluminum to ship aluminum produced in Australia to the U.S. for sale, while aluminum produced in Canada will be redirected to Europe for sale.

Earlier, Trump stated that the U.S. government would impose a 25% tariff on imports from Canada and Mexico starting as early as February 1, with a 10% tariff on Chinese goods, and is also considering a 10% tariff on other imports. Oplinger's comments reflect the potential complex impacts of Trump's tariffs on global trade.

Currently, Alcoa produces 2.2 million tons of aluminum annually, of which 900,000 tons are produced in Canada, with most of the Canadian-produced aluminum sold in the U.S.

Oplinger told Reuters that if Trump imposes a 25% tariff on Canadian imports and a 10% tariff on products from countries other than Canada and Mexico, the company would have to ship aluminum from Australia to the U.S. to achieve the best profit margins, while Canadian aluminum would be redirected to Europe.

He estimates that U.S. aluminum users will have to pay an additional $1.5 billion to $2 billion as a result