Canadian Prime Minister Justin Trudeau said on June 29 that the U.S. tariff on aluminum imports from Canada would eventually harm the interests of American manufacturers, citing a recent report that the trump administration may impose tariffs on Canada as early as July 1.
"We've heard ideas and proposals from the United States that there may be a need for more tariffs on aluminum imports," Trudeau said at a press conference "We just stressed that the United States needs Canadian aluminum."
Trudeau said the raw aluminum produced in the United States was not enough to meet domestic demand.
"If they impose tariffs on Canadian aluminum, they are just increasing the necessary input costs for local manufacturers, which will damage the U.S. economy," he said "Once again, we see that our economy is so closely linked that punitive measures by the US government will ultimately hurt itself, just as it has hurt Canada."
Trudeau's comments on U.S. industry and Canadian aluminum echo similar statements from the U.S. - based Aluminum Association
In a June 25 letter to Robert Lighthizer, the US trade representative, the association said: "even at full capacity, U.S. original smelters can only meet about one-third of local primary aluminum demand." "The aluminum industry has no choice but to import large quantities of raw aluminum to meet its demand."
In 2018, the trump government imposed a 10% tariff on imported raw aluminum and a 25% tariff on imported steel. But Canada and Mexico are exempt from tariffs in 2019.
However, ACA called for a new tariff on Canada.
APAA CEO Mark Duffy recently told S & P global Proctor energy consulting that "since the 10% tariff on Canadian aluminum imports was removed, Canadian products have poured into the United States, resulting in domestic aluminum prices falling, production capacity stagnating and workers laid off."
On the contrary, the Aluminum Association believes that the current trend of aluminum imports from Canada is consistent with the level before tariffs.
"While Canadian metal imports did increase, the current import volume is similar to 2017, which was closest to the current production level in the United States before the introduction of tariffs," the association said in a statement on June 9
According to the Aluminum Association, the restart of the becancour aluminum smelter in Quebec in July 2019 after the settlement of the labor dispute was the reason for the increase in imports, not the tariff exemption.
American group opposes to impose aluminum tariff on Canada (for details, please click: executives of several American aluminum companies oppose to impose 232 tariff on Canada)
According to a statement issued on June 26, some U.S. - based industrial groups opposed the resumption of tariffs on aluminum imports to Canada.
"Reports that the US will impose new tariffs on Canadian aluminum exports just the week after a new North American trade agreement takes effect is a mockery of the agreement, threatening thousands of Canadian jobs and ignoring the real problems facing the industry," the United Steelworkers said
The U.S. metal manufacturers and users Alliance said the prospect of a new tariff on Canadian aluminum would hurt manufacturers who had just recovered from the outbreak.
"Tariffs are taxes. The last thing U.S. manufacturers want to see is a government tax on important products such as aluminum, and these companies are meeting the unprecedented challenges of the new epidemic," cammu said "Manufacturing is the backbone of the U.S. economy, and raising the cost of manufacturers using aluminum will lead to unemployment and slower recovery."
U.S. industrial groups interested in aluminum can manufacturing also wrote to express concerns about Canadian tariffs.
"For decades, the United States has imported more raw aluminum from Canada than from any other country, a large part of which is for the benefit of Alcoa itself," the letter said "These imports are also critical to many American businesses, and they are very important to our economy as a whole."
The letter was signed by the Aluminum Association, the beer association, the canning Manufacturers Association and the American Beverage Association.
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