Joint Industry Letter Demands Elimination of Tariffs, Quotas Prior to USMCA

The proposal to replace tariff with quota on aluminum imports in North America would be highly detrimental.

SEATTLE (Scrap Monster): A joint letter by the Aluminum Association, the Aluminum Association of Canada and IMEDAL calls for removal of aluminum tariffs and quotas prior to implementation of the United States-Mexico-Canada Agreement (USMCA). The letter is addressed to the U.S. president Donald Trump.

The letter, on behalf of the North American aluminum industry, seeks to expeditiously resolve any national security concerns related to the Section 232 tariffs and reinstate quota-free exemptions for Canada and Mexico before the implementation of USMCA. The above measures will foster continued investments in the region’s aluminum industry, which supports approximately 852,000 direct and indirect jobs, the letter noted.

The Section 232 tariffs limit access for North American aluminum producers to reach out to their suppliers and customers. The new USMCA cannot work as intended without reinstating exemptions for Canada and Mexico, the letter said.

The proposal to replace tariff with quota on aluminum imports in North America would be highly detrimental. The implementation of quota system may even fail to ensure access of aluminum inputs for downstream manufacturers of aluminum products. Tariffs or quotas against key trading partners and allies will not offer solution to tackle the real problem in the industry, which seems to be the issue of illegally subsidized aluminum overcapacity from China.

Heidi Brock, President & CEO, The Aluminum Association; Fernando A. Garcia, President, IMEDAL and Jean Simard, President & CEO, The Aluminum Association of Canada are the letter’s signatories.

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