US reimposes 10pc tariff on Canadian aluminum imports
The US today reimposed a 10pc tariff on imports of non-alloyed unwrought aluminum from Canada, restoring the Section 232 tariff that had been rescinded in May 2019.
The move, which goes into effect 16 August, was widely expected by North American aluminum market participants and contributed to a rise in the US Midwest transaction price for P1020 aluminum with the tariff threatening to crimp supply from the US' largest supplier.
Argus assessed the premium at 11.5-12¢/lb in each of the last two weeks, up by 38pc since late April and the highest since 1 April. US traders also have seen Canadian producers pull offers into the country in anticipation of the tariff.
The White House said the move to restore the tariff resulted from a substantial increase in imports of non-alloyed unwrought aluminum from Canada in the 12 months since it was removed, which "threatens to harm domestic aluminum production and capacity utilization."
"Canada was taking advantage of us, as usual," US President Donald Trump said while speaking at a Whirlpool production facility in Ohio today. "The aluminum business was being decimated by Canada."
The reimposed tariff also comes despite the passage and implementation last month of the USMCA trade agreement that replaced Nafta, which had been expected to calm trade tensions between the North American trading partners.
US groups have expressed opposition to the tariff, with the US Chamber of Commerce in June saying it will harm US manufacturers that consume aluminum.
The US imported 1.6mn metric tonnes (t) of non-alloyed unwrought aluminum (HS code 760110) from Canada from June 2019-May 2020, a 90pc increase from the same 12-month period prior when the 10pc tariff was in effect, according to US Commerce Department data. Total US imports over the period grew by 51pc to 2.3mn t.
For the first half of 2020, total non-alloyed unwrought aluminum imports increased by 62pc to 1.2mn t from the same time in 2019 as volumes from Canada grew by 137pc to 923,000t.
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US met coal suppliers expect belated supply tensions
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US job growth nearly halved in April
US job growth nearly halved in April
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UK decoiler Atlantic Steel enters administration
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