The US May Remove Duties On Canadian Aluminum As A Result Of Reduced Imports
The US may return to duty-free aluminum imports from Canada if the volume of aluminum imported does not exceed the volumes set by the US trade representative, the trade representative said in a release.
The regulator said that after consultations between the States and the Canadian authorities, the countries determined that aluminum trade is likely to normalize before the end of the year, while the volume of imports will sharply decrease. "It is expected that the average monthly import will decrease by 50% compared to the turnover in the period from January to July. Following this, the United States will change the terms of 10% duties imposed in August on imports of Canadian aluminum," the report says.
The US trade representative expects Canadian aluminum imports to be 83,000 tons in September and November and 70,000 tons in October and December. "Based on these expectations, the US will resume duty — free trade in aluminum retrospectively until September 1, 2020," the US trade representative said.
According to the regulator, six weeks after the end of any month, the US will determine whether the volume of actual deliveries meets the prescribed ones. In the event that imports exceed 105% during any month from September to December, the States will "retroactively" impose a duty on all shipments made in the month when the excess was recorded.
The US also reserved the right to return duties of 10% in the future, if the allowed volume of imports is exceeded.
In early August, US President Donald Trump announced that the US is resuming levying duties on aluminum from Canada to protect and support the American aluminum industry. The next day, Canadian Prime Minister Justin Trudeau promised to impose retaliatory measures against the United States within 30 days.