The US has re-imposed 10pc tariffs on the import of unprocessed Canadian aluminum, just as the new USMCA between the US, Canada, and Mexico comes into effect.
In May 2018, US levied tariffs on imports of Canadian steel and aluminum during the ongoing North America Free Trade Agreement (NAFTA) negotiations. Canada had retaliated with the same countermeasures on US steel and aluminum imports into the country. This stayed for a year after which, both nations issued a joint statement stating a decision to lift the tariffs.
The Aluminium Association of Canada (AAC) expressed its disappointment over the re-imposition of tariffs and stated that the primary aluminum exports from Canada into the US dropped by almost 2.6pc from June 2020 compared to the previous month. The AAC also added that aluminum imports into the US from Canada fell by almost 5pc in H1 2020 compared to the same period in 2017, when the tariffs were first imposed.
The association further added that the US only produces close to 1mn mt of primary aluminum annually while it consumes six times that amount towards which, Canada is a major contributor. Monthly fluctuations in the aluminum import numbers were merely a result of changes in the market conditions and not a reflection of increased imports into the US it said in a statement.
The AAC mentioned that it will work with its counterpart, The US Aluminium Association, to ensure a fair trade playing field for both nations.