IPP&T Magazine Online

Temporary exemption on aluminum tariff remains temporary

May 1, 2018  

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The U.S. administration announced today that Canada’s exemption from a 10 per cent aluminum tariff will be extended until June 1 – yet anxiety remains high for aluminum exporters.

“While we appreciate that Canada remains exempt from the tariffs, delaying a permanent exemption only amplifies the uncertainty that the global aluminium industry has been facing for the last few months,” said Jean Simard, President and CEO of the AAC. “The U.S. should make a permanent and total exemption for Canada a priority since the Canadian aluminium industry is an integral part of the American value chain. We are a reliable trading partner that follows market rules.

“As a strategic ally to the United States,” continued Simard. “We need certainty in order for the integrated manufacturing supply chain – that both countries helped build over the last 50 years – to work well and keep North America competitive.”

The global aluminium industry has been facing structural problems for the past years, resulting in a state of global overcapacity. China is mainly responsible for this imbalance in the aluminium sector through its illegal subsidies to producers of both primary aluminum and semi-fabricated aluminum products.

“The U.S. administration should focus its remedies strictly on Chinese primary and semi-fabricated products, while reinforcing its links to market economy countries such as Canada,” said Simard. “Moreover, the growing demand for metal in North America precludes any thought of quotas that will only further distort the market.”

(Aluminum Association of Canada)