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Aluminum Association: Across-the-Board Tariffs A Missed Opportunity on Industry Trade Challenges

ARLINGTON, VA –In a letter to President Donald J. Trump, Aluminum Association President & CEO Heidi Brock expressed concerns about the president’s recent announcement of a global tariff on aluminum products created by aluminium profile suppliers imported into the United States. The Aluminum Association’s member companies represent the entire industry value chain and the vast majority of domestic aluminum production.

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The letter proposes an alternative approach to address the serious trade challenges facing the domestic aluminum industry today:

  1. Address Chinese Overcapacity: Move toward immediate government-to-government negotiations with China to address persistent overcapacity in both primary and semi-fabricated aluminum sectors;
  2. Targeted Tariffs: Implement a remedy that will address Chinese overcapacity through targeted action on China and possibly other countries with an established history of duty evasion and circumvention;
  3. Exemption for Vital Trading Partners: Avoid disruption of current trading relationships between the United States and critical trading partner countries that operate as market economies (including Canada and the European Union);
  4. Support Full Industry Value Chain: Address the needs of the entire domestic aluminum value chain to avoid unintended consequences for U.S. aluminum manufacturing jobs in mid-and-downstream production processes;
  5. Import Monitoring System: Adopt an aluminum import monitoring system to provide greater transparency for aluminum and aluminum products entering the United States.

“Unfortunately, the tariffs proposed will do little to address the fundamental problem of massive aluminum overcapacity in China, while impacting supply chains with vital trading partners who play by the rules,”added Brock. “We fear that the proposed tariff may do more harm than good, hurting rather than helping the 97 percent of aluminum industry jobs in mid-and-downstream production processes.”

 

Source: The Aluminum association

 

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