U.S. aluminum tariffs that were meant to protect the industry from foreign competitors are instead taking a bite out of the earnings of the nation’s largest producer.
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 company has been hit with $15 million in costs so far on material it made mostly in Canada and shipped to the U.S. It also cited lower aluminum prices and higher energy costs for the cut. Alcoa shares slid.