Aluminum Association requests unwavering support to strengthen trade enforcement at the USITC hearing

The Aluminum Association provided testimony on Wednesday, July 20, regarding the financial effects of Section 232 and Section 301 tariff programmes before the U.S. International Trade Commission (USITC). The Aluminum Association's president and CEO, Charles Johnson, noted how China's widespread uses of industrial subsidies in the aluminium industry have skewed the world market for the metal.

Utilizing American antidumping and countervailing duty rules, the U.S. aluminium sector has recently been successful in obtaining relief from unjustly priced and dumping metal in many markets. These focused actions have given U.S. manufacturers that the USITC unanimously concluded were harmed by unjustly traded imports from China and later other nations’ vitally essential, long-lasting remedies.

“The United States is a deficit market for aluminum, meaning it consumes more of the metal than it is able to produce domestically. Consequently, most of U.S. aluminum industry jobs rely in some way on reliable international supply chains. I’m happy to report that the U.S. aluminum industry is globally competitive and growing. However, the industry has faced a distorted global market in recent years driven primarily by massive growth in government-subsidized and state-owned aluminum production in China,” said Charles Johnson, president & CEO of the Aluminum Association, in testimony before the panel.

Over the previous year, American aluminium businesses have committed to or spent more than $3.5 billion in domestic operations, mostly in recycling and mid- and downstream manufacturing. This is a portion of the more than $6.5 billion that has been spent in the US over the past ten years as a result of rising demand for environmentally friendly aluminium products and a bipartisan commitment to focused trade enforcement. Johnson also discussed the continuing Section 232 tariffs on imported aluminium and aluminium goods.

“With respect to Section 232 tariffs, the association and its members did not request relief under this tool, which chiefly aimed to support U.S.-based primary aluminum producers. And, while the tariffs have provided some level of stability for aluminum firms up and down the value chain, they have not addressed the fundamental and ever-evolving distortions resulting from China’s rampant use of industrial subsidies in the aluminum sector. Any future actions to alter or remove the tariffs should be undertaken carefully with a stepped approach, and in a way that minimally disrupts the US market,” explained Charles Johnson.

The group will provide further written comments after the hearing to emphasise the need of maintaining a strong commitment to trade enforcement. By March 15, 2023, the Commission must submit its inquiry report to Congress.