Critiques and Praise for Doubling of 25% Aluminum, Steel Tariffs
President Donald Trump's announcement that he would double Section 232 tariffs on aluminum, alongside steel, to 50% -- when the vast majority of imported aluminum was duty-free until March 12 -- drew warnings from the largest aluminum trade group.
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The Aluminum Association issued a statement that it would like to work with the administration to increase domestic aluminum production. (About half of the aluminum consumed in the U.S. is imported, the vast majority from Canada.) "However, aluminum and steel are different. Tariffs alone will not increase U.S. primary aluminum production nor support the $10 billion invested by the mid-and-downstream industry over the past decade," the group said. "We need significant new sources of reliable, low-cost electricity and an all-of-the-above policy approach to keep and collect more domestic aluminum scrap. We also need consistent, predictable trade and tariff policy to plan for current and future investment.
"The association is in contact with the administration to better understand the details of this proposed tariff increase. We urge the administration to take a tailored approach that reserves high tariffs for bad actors -- such as China -- that flood the market and includes carve outs for proven partners -- such as Canada. Doing so will ensure the U.S. economy has the access to the aluminum it needs to grow, while we work with the administration to increase domestic production."
The American Primary Aluminum Association, the group that lobbied for the initial 10% tariff on imported aluminum in Trump's first term, praised what they called "strong and decisive action."
APAA President Mark Duffy said, "For decades, subsidized foreign producers have hollowed out domestic aluminum manufacturing. Under President Donald J. Trump, we finally have a strong leader who is fighting to rebuild domestic manufacturing and protect thousands of American aluminum jobs."
The Can Manufacturers Institute reacted with alarm to the doubling of the steel tariff. The trade group said, "Doubling the steel tariff will further increase the cost of canned goods at the grocery store," and noted that a reduction in domestic tin mill steel production has led to companies needing to import almost 80% of the metal they form into steel cans.
"Ultimately, these metal tariffs put our nation’s food security at risk. We are asking President Trump for targeted tariff relief on tin mill steel and aluminum produced by our allies and used in the production of cans that are made in America.”
Congress has no ability to constrain Section 232 tariff hikes, unless the original law giving the president the ability to restrict trade for national security reasons is revised. Rep. Don Beyer, D-Va., has introduced a bill with a colleague that would require that current Section 232 tariffs be approved by Congress, and if it did not do so within 75 days, the tariffs would end. It would also give Congress the ability to stop future tariffs or quotas -- unless a majority within 60 days of a proposal, they could not go forward (see 2503100074).
Beyer, via a spokesperson, said, "Quite simply, these tariffs will be terrible for the manufacturing and construction sectors, another huge tax on key inputs seemingly announced on a whim. Trump's attacks on the US economy won't stop until Congress puts an end to his unchecked tariff power."