The US has revoked the 10pc tariff it imposed on Canadian non-alloyed, unwrought aluminum imports a month ago.
The United States Trade Representative (USTR) made the announcement in a press release Tuesday afternoon, adding that it believes aluminum imports from Canada won’t exceed 75,000mt this month, 63,000mt next month, 75,000mt in November, and 63,000mt in December.
If the shipments exceed 105pc of the aforementioned volumes, the US will impose a 10pc retroactive tariff on all shipments, the USTR added. At the end of the year, the US will review aluminum imports from Canada before making any further decisions.
The 10pc tariff on Canadian non-alloyed, unwrought aluminum was imposed by the US at the beginning of August, and as of yesterday Canada planned to retaliate with counter-tariffs on US aluminum imports. However, since the US repealed its Sec 232 tariffs, retaliation is no longer imminent.
The Aluminium Association stated that it’s happy with the US’s decision to rescind the tariffs and it supports quota-free trade within North America, especially because the sector is still reeling from the COVID-19 pandemic.
According to the Canadian Association of Recycling Industry (CARI), the tariffs imposed by the US on imported Canadian aluminum didn’t include duties on Canadian aluminum waste and scrap. Almost two-thirds of Canada’s aluminum scrap is meant for export to the US. CARI suggested retaliatory tariffs would exacerbate the problem, and advised the Canadian government not to pursue such a course of action.