In March 2018, President Donald Trump to adjust aluminum tariffs to 10 percent under Section 232 of the Trade Expansion Act of 1962. The president's decision followed an investigation into the national security implications of imported aluminum that was launched in .
While the Aluminum Association appreciates the president's attention to the domestic aluminum industry, across-the-board tariffs won't address the The domestic aluminum industry is growing – creating American jobs and committing or investing more than $2.6 billion since 2013 to expand U.S. manufacturing. But
China’s illegal subsidies to producers of both primary aluminum and semi-fabricated aluminum products have resulted in significant overcapacity in the market, hurting the plants and people of the U.S. industry. Chinese primary aluminum overcapacity continues to grow unabated, significantly distorting markets and encouraging illegal dumping. Excess capacity alone in China last year totaled 11 million metric tons of aluminum -- 40 percent of the rest of the world’s total production of 27.5 million metric tons.
“The president’s decision represents an opportunity to engage our critical trading partners on addressing persistent Chinese aluminum overcapacity,” Aluminum Association President & CEO Heidi Brock said in a following the tariff signing. “ .”
The Aluminum Association is the leading voice for the U.S. aluminum industry, representing aluminum firms across the value chain, from primary producers to value added aluminum processors to recyclers to suppliers to the industry. Since the Section 232 remedy was announced, the Aluminum Association has worked with members to share the views of the domestic industry.
In outreach to the administration and others, the Aluminum Association has called for:
Instead of across-the-board tariffs that could disrupt supply chains and undermine efforts to work with trading partners that share our concerns about China, the aluminum industry is proposing:
for all countries designated by the Commerce Department as market economies;
▪ The creation of an to ensure that no unfairly traded metal is entering the United States;
▪ Immediate to address the trade distorting practices that drive structural aluminum overcapacity.
In a recent , the association noted that that . Even if we brought every U.S. aluminum smelter back online tomorrow, we could not produce nearly enough primary aluminum domestically to satisfy growing demand. The U.S. produces less than 1 million metric tons of primary; our total capacity is less than 2 million metric tons; and we consume between 5 – 6 million metric tons. .
“Efforts to strengthen U.S. aluminum will only succeed if we all recognize the industry's global interdependence and maintain a laser-like focus on the real problem: structural overcapacity in China,” Brock wrote.
North America recorded its , up 45.1 percent since 2009. The estimated 27.2 billion pounds of aluminum shipped domestically last year was a record since tracking began in the 1960s. However, persistent and dramatic Chinese and hurting the entire domestic value chain. During a period of record demand, the domestic industry should be growing even more. We are missing a major opportunity to grow high-paying, advanced manufacturing jobs in the aluminum sector. .
The call to address Chinese overcapacity has grown following the president's tariff announcement and has transcended party lines. From more and more people are recognizing that
Visit o learn more about the Chinese overcapacity and the steps the Aluminum Association has taken and continues to take to address this consistent threat.