Trump Reinstates Tariffs On Canadian Aluminum

On August 7, President Trump issued a proclamation reinstating the Section 232 tariffs on Canadian aluminum. Due to what is described as a surge in Canada’s aluminum exports to the United States, the proclamation re-imposes a 10 percent ad valorem additional duty on imports of non-alloyed unwrought aluminum from Canada.

The proclamation takes effect with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 16 and “shall continue in effect, unless such actions are expressly reduced, modified, or terminated.”

View Proclamation Here

THE U.S. TRADE REPRESENTATIVE (USTR) ISSUED THE FOLLOWING STATEMENT:

The President exempted Canada from the tariffs he imposed under Section 232 on the basis of an agreement that imports of steel and aluminum products from Canada would remain at historical levels. Since the President exempted Canada, imports from Canada of the product that accounts for the largest share of Canada's aluminum exports to the United States have surged above historical levels. The surge has intensified in recent months, despite a contraction in U.S. demand. To ensure the continued integrity and effectiveness of the national security measures the President adopted under Section 232, the United States has re-imposed a tariff on the surging imports, as provided for in our agreement with Canada.

BACKGROUND

On May 17, 2019, the United States announced an agreement with Canada to remove Section 232 tariffs on steel and aluminum imports from Canada and for the removal of all retaliatory tariffs imposed on American goods by Canada. The agreement provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminum. The list of products covered by this mechanism is set forth in the agreement. Under the agreement, if surges in imports of any of the specified steel and aluminum products occur, the United States may re-impose Section 232 tariffs on those products

Following removal of the Section 232 tariffs on imports from Canada in May of last year, imports of non-alloyed unwrought aluminum have increased substantially to a level above historical volumes of trade over a prolonged period, including a period during which U.S. aluminum consumption has decreased significantly. In light of this surge, and in keeping with the terms of the agreement concluded with Canada, the United States today re-imposed the Section 232 10% ad valorem additional duty on imports of non-alloyed unwrought aluminum from Canada.

For more information, please contact Samantha Rocci at srocci@rvia.org.