US aluminium premiums may double if Section 232 tariffs, quotas on Canada return, trade bodies say

Aluminium premiums in the United States could almost double if Section 232 tariffs or quotas were imposed on imports of aluminium from Canada, and would have a “financially disastrous” effect on American manufacturers, according to a group of US trade associations.

The group includes the Beer Institute, the Coalition of American Metal Manufacturers & Users and the Flexible Packaging Association. It sent a letter to US President Donald Trump urging him to avoid the renewal of Section 232 tariffs or quotas on imports of Canadian aluminium.
The letter was signed by 18 associations, and said that a tariff or quota would be harmful for American manufacturers, workers and the downstream industries that they represent.
“We recognize that your administration wants to support US smelters, especially in the face of Chinese aluminium overproduction,” the letter said. “A tariff or quota on Canadian aluminium will not help with that problem. All that a tariff or quota on Canadian aluminium will do is make all the aluminium in [the US] significantly more expensive.”

Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US, at $0.085-0.095 per lb on July...

Published

Andrea Hotter

July 15, 2020

19:15 GMT

New York