Trade Association Challenges EPA Claims on Section 232 Tariffs

SEATTLE (Scrap Monster): According to the Aluminum Association, the Section 232 Tariffs on metals including Aluminum, imposed by the Trump administration, has done nothing to address the structural aluminum overcapacity in China and ever-rising exports from that country, which tend to distort the global market.

According to the Association, the Chinese primary aluminum capacity surged higher by almost 6% in 2018, despite the hefty tariffs imposed by the U.S. administration and waning domestic demand in China. Surprisingly, production witnessed growth in Q2 ’18, the period in which the tariffs were introduced. The exports of downstream aluminum products from China hit record high during the previous year, surging higher by almost 25% over the previous year.

The Association challenged the Economic Policy Institute (EPI) report’s claims that Section 232 tariffs on aluminum have driven a significant amount of investment in the U.S. and have led to strong recovery in production and employment. It noted that nearly 85% of the cited $3.3 billion investments were announced prior to implementation of the tariffs. The overall 3% jump in aluminum industry jobs since 2013 is not attributed to Section 232 tariffs and could be considered only as a continuation of a near decade-long trend.

The Aluminum Association urged Trump administration to address structural overcapacity in China and also requested removal of tariffs on market economy countries. It further called for removal of Section 232 tariffs as part of the final implementation of the United State-Mexico-Canada Agreement (USMCA).