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September 18, 2020

U.S. cancels tariffs on Canadian aluminum under certain conditions

The U.S. Trade Representative (USTR) announced on September 15, 2020 the cancellation of the 10% duty which was imposed on Canadian unwrought aluminum products. The cancellation will be retroactive to September 1, 2020.

The USTR says it has has determined that trade in non-alloyed, unwrought aluminum is likely to normalize in the last four months of 2020, with imports declining sharply from the surges experienced earlier in the year. Average monthly imports are expected to decline 50 percent from the monthly average in the period of January through July.

The United States expects that shipments of non-alloyed, unwrought aluminum from Canada for the remainder of 2020 will be no greater than predetermined monthly volumes. If actual shipments exceeded 105 percent of the expected volume for any month during the four-month period, then the United States will impose the 10 percent tariff retroactively on all shipments made in that month.

The announcement by the American Government came just hours before Canada was set to announce retaliatory measures in response to the United States’ imposition of the 10% duty Canadian aluminum. The U.S. tariff, which was announced by President Donald Trump on August 6, came into effect on August 16.

Link: USTR Statement on Canadian Aluminum

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