Donald Trump formally removes tariffs on Canadian aluminium; threaten to re-impose, if there is surge in imports

On 27^th October’20, The President of United States, Donald Trump issued a decree towards formally removing the tariffs on raw aluminium imports from Canada, but with a threat to re-impose them, if a surge in imports crosses the northern US border.

"I have determined that imports of aluminium from Canada will no longer threaten to impair the national security, and thus I have decided to reinstate Canada's exclusion from the tariff," the decree reads.

The decree follows an agreement with Canada made public previous month by the US Trade Representative’s office to reinstate exclusion for Canadian imports from 10% “Section 232” national security tariffs, retroactive to 1^st September.

The US President first granted the exclusion to Canada in 2019, but a surge in imports of Canadian non-alloyed, unwrought aluminium prompted him to impose the tariffs back on in August, which inflamed tensions with Canada.

Imports for the three months to December will be capped at 70,000t, 83,000t and 70,000t, respectively. If actual shipments exceeded 105% of the expected volume for any month during the period, the US will impose the 10% tariff retroactively on all shipments made in that month.

The US also reserves the right to re-impose its 10% duty should import exceed 105% at any time.

Trump said in the proclamation he may re-impose tariffs on non-alloyed unwrought aluminium from Canada “in the event that the volume of imports of these articles from Canada in the remaining months of 2020 exceeds the quantities that the United States expects will be exported from Canada”.