U.S. Imposes 200% Duties on Imports Containing Russian Smelted or Cast Aluminum

russia-aluminum-tariffs
Trade Update • March 8, 2023
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n Feb. 23, 2023, issued A Proclamation on Adjusting Imports of Aluminum Into the United States, which increases tariffs, under Section 232 of the Trade Expansion Act of 1962, on imports from Russia and other countries of aluminum and derivative aluminum articles.

Aluminum Tariffs Increase

  • On March 10, 2023, a 200 percent duty on “aluminum articles that are the product of Russia and derivative aluminum articles that are the product of Russia”; and
  • On April 10, 2023, a 200 percent duty on “aluminum articles where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or the aluminum articles are cast in Russia, and derivative aluminum articles where any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia.” (Where “primary aluminum” is defined as new aluminum metal that is produced from alumina (or aluminum oxide) by the electrolytic Hall-Heroult process.)

Justification of Tariffs Increase

Russia is among the major exporters of aluminum to the United States for domestic consumption. While aluminum imports from Russia have declined from the volume in the Secretary’s 2018 report, Russia remains the fifth largest source of imported aluminum in the United States, and the imports of aluminum from Russia have increased in both 2021 and 2022.

Distortions that result from overcapacity threaten market-oriented aluminum industries and Russia’s aluminum industry in particular is extremely export oriented, with Russia being the largest exporter of unwrought aluminum in 2021 and Russian domestic consumption accounting for just 22 percent of Russian production across 2021 and 2022. United States imports of Russian aluminum increased by 53 percent between March and July 2022. Whereas capacity utilization in the U.S. domestic aluminum industry remains well below the target capacity utilization level recommended in the January 2018 report. Two of the five remaining aluminum smelters in the United States are in danger of closing as a result of continued high levels of aluminum imports and high energy prices.

Russia continues its unjustified, unprovoked, unyielding, and unconscionable war against Ukraine. The Russian aluminum industry is a key part of Russia’s defense industrial base and has played a major role in supplying Russia with weapons and ammunition used in the war. In addition, Russia’s war against Ukraine has caused global energy prices to rise, causing direct harm to the United States aluminum industry.

Exemption

Concerns about aluminum imports from Russia and their impact on U.S. national security are shared by other countries. The U.S. recognizes that they need to work together with their partners to ensure that the global market distortions caused by Russian aluminum articles do not distort markets and threaten U.S. national security. Any country that imposes a tariff of 200 percent or more on its imports of aluminum articles that are products of Russia may be exempt from the tariff imposed by the proclamation.

Questions about these increasing duties, and if your products are affected? We are always here to help, contact us.

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