On Thursday, May 1, William Oplinger, CEO of Alcoa, publicly stated that the company’s order volume remained robust in the second quarter, with no sign of decline linked to U.S. tariffs. The announcement has injected confidence into the aluminum industry and sparked significant market attention on Alcoa’s future trajectory.

As a major player in aluminum production, Alcoa has a wide-ranging global footprint, with production bases and operations across multiple countries. In the current complex international trade landscape, tariff policy shifts have significantly impacted aluminum supply chains. Last month, during a post-earnings conference call, Alcoa revealed that U.S. tariffs on aluminum imported from Canada are expected to cost the company approximately $90 million in the second quarter. This stems from the fact that some of Alcoa’s aluminum products are produced in Canada and then sold in the U.S., with the 25% tariff severely squeezing profit margins—the first quarter alone saw losses of about $20 million.

Despite these tariff pressures, Alcoa’s Q2 orders have remained strong. On one hand, the gradual global economic recovery has driven demand in key aluminum-consuming industries such as transportation and construction, while the rapid growth of the new energy vehicle sector has significantly increased demand for lightweight, high-strength aluminum materials, boosting Alcoa’s orders. On the other hand, Alcoa’s long-standing brand reputation, technological R&D capabilities, and stable product quality have fostered strong customer loyalty, making clients less likely to switch suppliers due to short-term tariff fluctuations.

However, challenges lie ahead for Alcoa. The increased costs from tariffs must be absorbed internally or passed on to customers, potentially affecting product price competitiveness. The global aluminum market is highly competitive, with emerging aluminum enterprises continuously emerging to capture market share. Uncertainties in macroeconomic and trade policies may also impact aluminum demand and supply chain stability. To address these challenges, Alcoa needs to continuously optimize its cost structure, increase R&D investments to launch high-value-added products, expand into emerging markets, and reduce reliance on single markets to enhance risk resilience and market competitiveness.