Rio Tinto Flags $300M Cost Spike Due To Trump Tariffs On Canadian Aluminum

Mining giant Rio Tinto (RIO) said on Wednesday that Donald Trump’s tariffs on Canadian aluminum resulted in a gross cost of about $300 million for the company.

The U.S. initially imposed 25% tariffs on steel and aluminum products from Canada in March, before increasing them to 50% in June. The Trump administration has also unveiled 50% tariffs on copper, which are expected to take effect from Aug. 1.

Rio, the top aluminum producer in Canada, noted that higher premiums in the U.S. have compensated a ‘substantial part’ of the increased costs. However, the company stated that the premiums were able to cushion the blow from the initial 25% tariffs, but the June hike has not been entirely offset.

Retail sentiment on Stocktwits about Rio Tinto was in the ‘bullish’ territory, while retail chatter was ‘high.’

The company exported about 723,000 tons of aluminum to the U.S. in the first half of 2025, equivalent to about three-quarters of its output from Canada.

The commentary from the second-largest mining firm highlighted how Trump’s tariffs are impacting businesses in the U.S. Earlier in July, beverage maker Constellation Brands Inc. stated that it anticipates aluminum tariffs will cost the company about $20 million for the remainder of its fiscal year.

Separately on Tuesday, Rio Tinto named insider Simon Trott as its new chief executive. Trott has been leading the company’s highly profitable iron ore division since 2021 and will officially take over as CEO on Aug. 25.

The company also projected on Wednesday that its copper production is now expected to be at the higher end of its annual forecast, and copper unit costs will trend towards the lower end of the range. The company attributed the expected rise in production to the ramp-up at the Oyu Tolgoi underground mine in Mongolia.

Rio Tinto’s U.S. shares have declined marginally this year.

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