Trump Rescinds Section 232 Tariffs On Canadian Aluminium, But Promises Reimposing Them Should Imports Spike

Trump Rescinds Section 232 Tariffs On Canadian Aluminium, But Promises Reimposing Them Should Imports Spike

Donald Trump ended the import tariff on aluminium from Canada earlier this week, but he promised to reinstate it should shipments from the dominion spike at some point later this year.

Trump’s announcement comes after a new agreement between the two governments that saw the reinstatement of Canada’s exemption to the administration’s Section 232 blanket tariffs on aluminium imports.

The proclamation referenced the agreement when explaining the rationale behind lifting the tariff.

“In light of this agreement, I determined that, under the framework in the agreement established with Canada, imports of aluminum from Canada would no longer threaten to impair the national security, and thus I decided to exclude Canada from the tariff proclaimed in Proclamation 9704, as amended. I noted that the United States would monitor the implementation and effectiveness of the measures agreed upon with Canada in addressing our national security needs, and that I may revisit this determination as appropriate.”

The United States Office of Trade Representative consulted with their Canadian counterparts and determined that Canada is likely to ship 70,000 to 83,000 short tons of primary aluminium over their southern border each month for the rest of this year, noted the proclamation, which represents about half of the rate Canadian smelters sent aluminium for the year’s first seven months.

“The United States will continue to monitor the implementation and effectiveness of the measures agreed upon with Canada in addressing our national security needs, as described in Proclamation 9893,” promised the president in the proclamation, “both with respect to imports of non-alloyed unwrought aluminum and imports of other aluminum articles.”

The proclamation warned that retaliation would be swift and certain if imports rise, however. Should imports rise to above 105 percent of the stated allowable levels, the president would consider retroactive tariffs on Canada’s exports of the raw aluminium.