Lifting of tariffs on Canadian aluminium a breather for the Port of Oswego; business to pick up slowly

The lifting of tariffs on aluminium imports from Canada has been a breather for Oswego, which was under pressure due to the tax increase that affected the city’s two prime businesses. 

Aluminum is the key product that gets shipped through the Port of Oswego and a large number of jobs are dependent on this commodity.  So when Trump placed a 10 per cent tariff on aluminium from Canada, the largest aluminium exporter to the U.S., it took a toll on the budget of Oswego Port Authority, said Director William Scriber.

Since most of the aluminium suppliers were already under contract to ship aluminium to the port by the end of 2017, the business of the Port did not get significantly affected last year. But in the first quarter of 2019, imports of aluminium dropped 50 per cent from the same time in 2018.

"I’ve cut my labour force for the ILA, which is a local labor force longshoremen, 50 per cent, we’re cutting expenses right now, delaying repairs we normally would have done, projects we would have started here have been delayed until we can generate a more positive revenue stream," Scriber said.

Even after the tariffs are lifted, the situation, according to him is not going to improve soon.  Many aluminium suppliers have already signed contracts to haul the metal by other means and so the business is likely to move only towards the end of 2019.

It is the Novelis plant in Oswego which has made the Port of Oswego a busy port as it imports a large volume of aluminium from Canada to its plant to make products for the automotive and packaging sector.  Novelis North American Senior Vice President and President Marco Palmieri, said earlier that the tariffs impacted the Oswego plant because its operations are closely interlinked with the company's facility in Canada. Both the Port of Oswego and Novelis welcomed the decision to end the tariffs as it will facilitate smooth functioning of their operations.