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US suspends 10% tariff on aluminum imports from Canada

The United States Trade Representation (USTR) announced Tuesday that it will suspend the additional 10% duty on unalloyed Canadian aluminum imports retroactively to September 1, 2020.

The USTR expects average monthly imports to decline 50% from the monthly average in the January-July period.

As a result, the United States will modify the terms of the 10% tariff imposed in August on Canadian unalloyed raw aluminum imports.

The United States expects Canada’s unalloyed raw aluminum shipments for the remainder of 2020 not to exceed the following monthly volumes:

Last month, President Donald Trump reimposed tariffs on some aluminum from Canada as the United States posted substantial increases in imports through May that “exceeded the volume of any full calendar year in the previous decade,” according to a proclamation. August 6.

Aluminum imports

Based on these expectations, the United States will resume duty-free treatment of unalloyed raw aluminum retroactive to September 1, 2020.

Six weeks after the end of any month during this period, the United States will determine whether actual shipments met expectations.

If actual shipments exceeded 105% of the expected volume for any month during the four-month period, then the United States will impose the 10% duty retroactively on all shipments made in that month.

If shipments in any month exceed expected volume, the United States expects shipments in the next month to decrease by a corresponding amount.

In addition to the above, if imports exceed 105% of the expected volume in any month, the United States may reimpose the 10% tariff in the future.

The United States will consult with the Canadian government at the end of the year to review the status of the aluminum trade in light of trade patterns over the four-month period and expected market conditions in 2021.

Background

The United States originally imposed tariffs on Canadian aluminum and steel in 2018 under section 232 of the Trade Expansion Act of 1962 through Proclamation 9704 of March 8, 2018.

Negotiations with Canada resulted in Proclamation 9893 of May 19, 2019, which excludes Canada from the duties imposed by Proclamation 9704 but subject to conditions of monitoring and effectiveness.

Tariffs on unalloyed raw aluminum from Canada were reimposed by Proclamation 10060 of August 6, 2020 on the adjustment of aluminum imports into the United States effective August 16, 2020.

 

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