Coalition for a Prosperous America Argues Against Aluminum Trade Group in Calling for TRQs
The Coalition for a Prosperous America wrote to Commerce Secretary Gina Raimondo, suggesting that tariff rate quotas on European aluminum should be what replaces the 10% tariff on aluminum from the European Union. "We cannot return to the unhealthy belief that ad hoc anti-dumping or countervailing duties are sufficient for these vital sectors. Managing import penetration in aluminum, in particular, remains vital," the group wrote.
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The letter came two days after Tom Dobbins, the departing CEO of the Aluminum Association, wrote an op-ed published in the Pittsburgh Post-Gazette asking why the administration was considering tariff rate quotas for European aluminum when neither U.S. aluminum companies nor European ones want it. "Steel is largely a domestic industry, whereas aluminum relies on international supply chains. Steel is often produced entirely in one facility, whereas aluminum requires separate facilities, sometimes on other sides of the world, for smelting, rolling and processing. Steel is made from iron ore that can be mined in the U.S., whereas aluminum is made from bauxite, a mineral the U.S. mines very little of. Steel is facing subsidized overcapacity in Europe; aluminum is not," Dobbins wrote.
"The steel industry supports the TRQs, whereas the overwhelming majority of the aluminum industry does not. Nonetheless, the Biden administration seems intent on pursuing a one-size-fits-all approach."
He said there should be a gradual unwinding of the tariffs over three years.
In comparison, the CPA said that primary aluminum production increased 37.6% the first two years the tariffs were in effect. "The evidence clearly demonstrates that the U.S. government’s use of Section 232 to manage import penetration has benefited our national and economic security through stabilized domestic aluminum production.... Regrettably, multinational corporations -- even those with significant investment in the United States -- will too often put their short-term quarterly profit margins over the interests of Americans."