The nation’s largest aluminum producer is feeling tariff heat, they said Wednesday. So much so, they’ve lowered their profit expectations for 2018, Industry Week is reporting.
Alcoa Corp. lowered its 2018 profit projection as tariffs on imported aluminum present what Chief Executive Officer Roy Harvey is calling a “significant” headwind. The manufacturer has been hit with $15 million so far on material it produced mostly in Canada and shipped to the U.S. The company also cited higher energy costs and lower aluminum prices for the cut.
The forecast adds to concerns for commodity investors over the potential impact of the tariffs, with metal prices and producer shares languishing amid growing concern that a trade war could hamper economic growth. Harvey zeroed in on the levies slapped on shipments from Canada, where Alcoa was expected to make 28% of its primary aluminum this year, according to Bloomberg Intelligence.
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