US President Donald Trump imposed higher tariffs on European aluminium in June 2018, 10% to be precise. Six months on, a German aluminium producer is saying "Thanks Mr. Trump" as the company feels despite the aluminium tariffs, they have managed to earn higher revenue and do profitable business.
Alimax, which has a plant near Dusseldorf has been exporting to the U.S. and paying 10% import duties on aluminium but still they are able to make profits as the price of aluminium went up due to tariffs. This was confirmed by alimax CEO Philip Grothe in a media interview.
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Alimex, the inventor of the cast plate, produces aluminium cast plates for the highest demands. In German precision work, the company also manufactures aluminium components. The company supplies to industries like Mechanical Engineering, Medical, Semiconductor and Solar industry and automotive sector.
The German aluminium manufacturers exports to the U.S. and also manufactures in its US plant. Alimax CEO wants to expand its production at its South Carolina factory because the more they produce in the U.S. the less they would have pay in import taX and after one point tariffs will not matter much to the company.
Philip Grothe also added that the US operations account for only 10 per cent of the company’s revenue currently. However, he expects this to change with the expansion of operations in the U.S. The revenue and profit from the American business is likely to double in the next few years, he said.
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