Imports have been flooding into the aluminium industry, says US Commerce Secretary

The U.S. Commerce Department yesterday launched a probe into aluminium imports as it might be affecting U.S. national security. The investigation is alike to the one that was launched by the administration last week into steel.

Commerce Secretary Wilbur Ross said that “Imports have been flooding into the aluminium industry”. The aluminium imports had mounted 16 per cent in 2016. The production of aluminium in the country had dropped though.

He stated: "China subsidies have created overcapacity. At the very same time that our military is needing more and more of the very high quality aluminium, we are producing less and less of everything and only have one producer of aerospace quality aluminium." 

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The investigation will be commenced under Section 232 of the Trade Expansion Act. The investigation aims at determining the effect of imports on the national security.  The commerce department would take nine months to investigate the matter and then the president will decide whether to take action including high tariffs on aluminium imports.