Increased Tariffs on Chinese Imports a Win for U.S. Aluminum
18 April 2024 - 3:11AM
The Aluminum Association applauded today’s announcement by the
White House calling on the U.S. Trade Representative (USTR) to
triple existing Section 301 tariff levels for Chinese imports of
aluminum and steel from current levels of 7.5%. The Aluminum
Association has consistently advocated for an increase in the
Section 301 tariffs on aluminum imports from China as the most
appropriate action to directly target non-market behavior in China.
The association will work closely with the USTR as they implement
the White House directive. “Today’s decision is a win for the
U.S. aluminum industry and the nearly 700,000 American workers the
sector supports,” said Charles Johnson, president & CEO of the
Aluminum Association. “Unfortunately, China continues to engage in
significant unfair trade activities, including massive state
subsidies which hurt U.S. manufacturing and global carbon reduction
efforts. This targeted tariff action by the Biden administration
will help to counteract some of these challenges.” The White
House statement also noted that President Biden is “directing his
senior team to work with Mexico to jointly prevent China’s and
other countries’ evasion of tariffs on steel and aluminum.” The
Aluminum Association is working with industry partners in Mexico
and Canada to argue for increased trade monitoring and enforcement
by the Mexican government. “We appreciate the administration’s
efforts to address potential transshipment and tariff circumvention
in Mexico which may be allowing unfairly and illegally traded
aluminum from China, Russia and elsewhere to enter the U.S.
market,” said Johnson. Today’s announcement will also have a
positive impact on efforts to reduce carbon emissions in global
aluminum production. Years of industry benchmarking and a recent
third-party, critical-reviewed life cycle assessment (LCA) report
found that making aluminum and aluminum products in regions like
China, which rely disproportionately on coal-fired power, can be
two to three times as carbon intensive as making similar products
in North America. A study last year by the Organisation for
Economic Co-operation and Development (OECD) found that state
subsidizes for aluminum smelters in China and elsewhere were
exacerbating global greenhouse gas emissions. Other recent OECD
reports found that the vast majority of state subsidies in the
aluminum sector go to firms in China. The U.S. aluminum
industry is a key part of the U.S. manufacturing base and clean
energy transition, representing more than 160,000 direct American
jobs. Over the past decade, the industry has invested more than $10
billion in U.S. manufacturing including recycling operations and
the first greenfield rolling mills in a generation. The industry
was also the recent recipient of more than $650 million in
Department of Energy grants to support industrial decarbonization.
The energy and carbon impact of aluminum production in North
America (United States and Canada) has dropped to its lowest point
in history, declining by more than half over the past 30 years.
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About The Aluminum AssociationThe Aluminum
Association represents aluminum production and jobs in the United
States, ranging from primary production to value added products to
recycling, as well as suppliers to the industry. The association is
the industry’s leading voice, representing companies that make 70%
of the aluminum and aluminum products shipped in North America. The
association develops global standards, business intelligence,
sustainability research and industry expertise for member
companies, policymakers and the general public. The aluminum
industry helps manufacturers produce sustainable and innovative
products, including more fuel-efficient vehicles, recyclable
packaging, greener buildings and modern electronics. In the
U.S., the aluminum industry supports $176 billion in economic
activity and more than 634,000 jobs. For more information visit
https://www.aluminum.org or find us on Twitter, LinkedIn, Facebook
or Instagram.
Matt Meenan
Aluminum Association
703-358-2977
mmeenan@aluminum.org