Adjusting Imports of Aluminum Into the United States
1. Purpose
On March 12, 2025, the United States will increase tariffs on aluminum imports from 10% to 25% to protect national security amid ongoing threats from excessive foreign imports.
2. Key Actions And Directives
- Increase Tariff Rate: Raise the tariff on aluminum articles and derivative aluminum articles to 25% ad valorem, effective March 12, 2025.
- Terminate Existing Agreements: End agreements with Argentina, Australia, Canada, Mexico, the EU, and the UK regarding aluminum imports, applying the new tariff universally.
3. Important Points
- National Security Threat: The Secretary of Commerce previously reported that aluminum imports threaten U.S. national security, necessitating protective measures.
- Ineffectiveness of Prior Tariff: A prior 10% tariff was deemed insufficient as imports continued to rise, damaging domestic aluminum production capacity.
- Evasion of Tariffs: Foreign producers use tactics like transshipment to bypass U.S. tariffs, leading to higher imports and increased pressure on domestic markets.
- Impact of Product Exclusions: Product exclusions allowed significant imports that weakens national security efforts and compromises domestic production incentives.
- Global Market Effects: The international aluminum market, particularly excess capacity from countries like China and Mexico, has negatively impacted U.S. aluminum pricing and production.
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