EPI study reports positive impact of Trump’s tariffs on aluminium production and job creation in US

The American Primary Aluminum Association (APAA) in collaboration with Economic Policy Institute (EPI), the Alliance for American Manufacturing (AAM) and the Coalition for a Prosperous America (CPA) addressed the economic effects of Trump's steel and aluminium tariffs in a presentation at the National Press Club of Washington on December 11.

During the event, EPI released a new economic study that showed that the tariffs are having positive impact on aluminium production and job creation in the U.S.

The EPI study says that driven by aluminium tariffs, twenty-two new and expansion projects have been announced in the domestic downstream aluminium industries producing aluminium extruded and rolled products. The study says these expanded facilities will create 2,000 jobs, generate US$3.3 billion in new investments, and add about one million tons of annual rolling and extrusion capacity that will produce rod and bar, pipe and tube, extruded shapes and sheet and plates.

Jesse Gary, Chairman of the APAA said, "The U.S. primary aluminium industry and thousands of American aluminium workers are getting back to work, with domestic production expected to increase by over 60% by the end of the first quarter of 2019."

Former U.S. Senator Evan Bayh, who represented an aluminium and steel producing state for over two decades, noted that "the Section 232 aluminium tariffs protect us from countries that cheat and level the playing field for American workers."  

Robert E. Scott, Senior Economist at EPI and author of the latest report said, "This report examines real evidence of employment, investment and capacity expansions in both primary aluminium and downstream industries, and documents the positive and tangible economic impact the Section 232 tariffs have had on all segments of the aluminium industry."

The report says since the implementation of the tariffs; about 164,000 jobs have been created in the manufacturing sector, out of which 2,700 are in metal production. The report challenges the beer industry's claims that aluminium tariffs would harm the beer industry by raising prices of cans. The report says that the industry's growing demand for craft and imported brews have no relation with tariffs.

The report concludes by saying that that there is no evidence to suggest that import tariffs on aluminium or steel had negative employment impacts in downstream manufacturing or in parts of the economy. The report claims shipments of aluminium and steel products by domestic producers have increased in this period after tariffs.