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U.S. Drops 10% Tariffs on Aluminum Imports from Canada

Just weeks after reimposing tariffs on non-alloyed unwrought aluminum products from Canada, the Office of the U.S. Trade Representative (USTR) announced it will drop the additional 10% tariffs, retroactive to September 1, 2020.  The decision comes after Canada threatened to retaliate by imposing duties on $2.7 billion worth of imports from the U.S. on September 15.

After consultations with the Canadian government, the USTR’s determined that monthly trade in non-alloyed unwrought aluminum is expected to decline by 50% for the remainder of 2020, and the two sides agreed to set the following monthly import limits:

However, the USTR cautioned that in the event actual shipments exceed 105% of the expected volume for any month, the U.S. will:

  • Impose the 10% tariff retroactively on all shipments made that month
  • Expect that shipments in the next month decline by a corresponding amount
  • Consider reimposing the 10% tariff going forward

U.S. and Canadian officials will meet at the end of the year to review the state of aluminum trade and expected market conditions in 2021 to determine if additional duties are necessary.

Click here to read the USTR’s official press release.

About the Section 232 Tariffs

The U.S. originally imposed the Section 232 tariff on aluminum products from Canada in June 2018, and Canada followed by levying their own retaliatory tariffs.  Both countries lifted their tariffs in May 2019 after agreeing to a range of measures designed to keep imports of aluminum from Canada at stable historical levels without any meaningful increases.  On August 16, the U.S. reimposed the additional 10% tariffs after the Department of Commerce reported an 87% surge in imports over the prior 12 months.

For more information on the Section 232 tariffs, please contact a member of our Compliance Department at Compliance@oceanair.net.

OCEANAIR will continue to monitor the situation and provide status updates as they become available.