President Trump has reimposed an additional 10% tariff on non-alloyed unwrought aluminum products from Canada, effective August 16, 2020. In addition, no drawback will be available for goods subject to the Section 232 duty.
The U.S. originally imposed the Section 232 tariff on aluminum articles from Canada in June 2018, and Ottawa retaliated by levying tariffs American goods. The tariffs were lifted by both sides in May 2019 after the two nations agreed on measures which were expected to allow imports of aluminum from Canada to remain at historic levels without any meaningful increase.
The decision to reinstate the Section 232 duties came after an announcement by the Department of Commerce that imports of non-alloyed unwrought aluminum from Canada have surged by 87% in the 12 months since the tariff was lifted, while imports of the same articles from other countries decreased. As a result, the President determined that the previously-agreed measures have not been effective and the surge of aluminum imports from Canada “threatens to harm domestic aluminum production and capacity utilization.
Click here to read the White House Proclamation.
Canada to Impose Retaliatory Tariffs on $2.7 Billion in U.S. Goods
The Canadian government said it would respond by imposing a 10% duty on $2.7 billion in American aluminum and aluminum-containing products effective September 16, 2020. Affected goods will include beverage cans, aerosol containers, kitchen and household goods, refrigerators, washing machines, bicycles and bike parts, sporting goods, golf clubs, nails, screws, tacks, bolts, aluminum doors, ,metal furniture, and wire fencing.
Click here to see the full list of impacted goods.