Trade Groups Worried Over Possible Return of Section 232 Tariffs on Canadian Aluminum
The U.S. Chamber of Commerce and the Aluminum Association reacted with dismay June 23 to a Bloomberg report that the U.S. could re-impose 10% tariffs on Canadian aluminum on July 1, because of an alleged surge in imports since tariffs were lifted. The U.S. trade representative told senators last week that he is in consultations with Canada on the issue.
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Neil Herrington, senior vice president for the Americas at the Chamber of Commerce, said, “Bringing back these tariffs would be like a bad horror movie. Most of the U.S. aluminum sector opposes them, and they'll hurt American manufacturers who use aluminum as an input. Canada will surely retaliate against U.S. exports. This is the wrong way to mark the entry-into-force of the new North American free-trade agreement on July 1.”
The Aluminum Association said that getting the Canadians to agree to a quota would also be damaging, as it would limit growth for downstream users of aluminum, given that the majority of primary aluminum used in the U.S. comes from outside the U.S. That association represents Alcoa, one of the three primary producers in the U.S.; that company also has operations in Canada, where hydroelectricity makes production more economical than in most U.S. locations.