b'NEWSWIRETariffs Imposed on Imported Aluminum, SteelO nFeb.11,2025,PresidentProclamation 9704 that mitigatedThen, on March 11, DonaldJ.Trumpinvokedthethreatenedimpairmentofthe president said that hisauthorityundervariousour national security, aluminum trade statutes to increase the ad valor- importsintotheUnitedStatesthe tariff on aluminum em tax on imported aluminum fromhavecontinuedatunacceptablefrom Canada would be the current 10 percent to 25 percentlevels as the global aluminum ex- 50 percent ad valorem effective this March 12. In addition,cess capacity crisis continues. In he has acted to ensure that all import- addition, the exclusion of certain And later the sameed aluminum will be subject to the adcountries and products from theday, he abruptly called valoremtariff(inhisfirstterm,thetariff and efforts by foreign pro-presidentallowedcertainnationstoducerstocircumventthetariffof this threatenedavoid the tariff if they held their alu- have undermined the purpose oftariff increase.minum exports to the U.S. to certainProclamation9704,whichwas limited amounts). to adjust the level of imports of aluminum to remove the threat- ernment subsidies and the contin-Then, on March 11, the president saidened impairment of the nationalued ability to exploit loopholes in thatthetariffonaluminumfromsecurity. This has again resultedU.S. trade policy.Canada would be 50 percent ad valor- inaluminumsmeltercapacityem (not the 25 percent he announcedutilizationratesinthedomesticDomesticaluminumproducers thepreviousmonth).Andlaterthealuminum industry that are wellhavebeenforcedtoidleaddi-sameday,heabruptlycalledofthisbelowthetargetlevelrecom- tional production and shut down threatened tariff increase. mended in the secretarys Jan. 19,facilities. Two primary aluminum 2018, report. This indicates thatsmelters within the United States AlsoonFebruary11,thePresidentthe initial tariff of 10 percent adhaveclosedsinceProclamation ordered that tariffs of 25 percent bevalorem is not high enough to ad- 9704waspromulgated.Inad-imposed on imports of steel. dress the threatened impairmentdition,U.S.primaryaluminum to our national security posed byproduction decreased by 30 per-The full text of the presidential exec- aluminum imports.cent from 2020 to 2024, and U.S. utive order regarding tariffs on alumi- smeltercapacityutilizationwas num imports can be reviewed here.Inparticular,thesecretaryhasonly 52 percent in 2024. Overca-informed me that global primarypacity for primary aluminum has A White House fact sheet on the orig- aluminum capacity has continuedharmeddownstreamaluminum inal steel and aluminum tariffs can beto increase, fueled by expansionsproducers,includingproducers viewed here.in the Peoples Republic of Chi- ofaluminumextrusionsand na(China)andSouthAmerica,aluminumsheet.ToallowU.S. Herearesomequotesfromhisini- which is seen in rising aluminumaluminumproducerstorestart tialexecutiveorderonaluminumimportsthatcontinuetoweighproductionandtoincentivize import tariffs: on the price domestic aluminumnewcapacity,additionaladjust-producers may charge. There hasmentstosection232tariffson The secretary has informed mealso been a significant increase inaluminumneedtobemade,in-that, notwithstanding the 10 per- ChineseinvestmentinMexico,cluding limiting exemptions and cent ad valorem tariff imposed bydrivenbymassiveChinesegov- increasing the tariff rate.43 MARCH 2025'