No exemption to aluminium cans in Sec. 232 probe: Aluminum Association urges U.S. Commerce

The Aluminum Association President Heidi Brock wrote a letter to the secretary of the U.S. Commerce Department urging him not to exempt aluminium cans allegedly dumped by China in the U.S. market from the ongoing Section 232 investigations.  Earlier this month, Can Manufacturers Institute (CMI) had asked the U.S. Commerce Department to exempt aluminium can sheets and other aluminium products, which are used to make beverage cans, from tariff or trade restrictions.

The head of the American Trade Association to Wilbur Ross, “As an industry directly impacted by Chinese overcapacity and unfair trading practices with respect to aluminum and aluminum products, we welcome the Section 232 investigation and encourage the Administration to consider actions that will specifically address Chinese overcapacity and its detrimental effects on U.S. producers and their workers.”

Any exclusion if effected would widen the scope for further transhipment of aluminium rolled products by certain Chinese aluminium extruders having extensive operations.  It would also lead to the funnelling of production by the Chinese aluminium rolled products manufacturers, which will add to the problems presently faced by the U.S. aluminium industry.

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The U.S. Senator Tammy Baldwin (D-WI) and Senator Cory Gardner (R-CO) sought an exception for aluminium cans to the ongoing investigation citing concerns that stopping aluminium can imports would adversely impact the domestic beer industry.

However, Brock chose to differ saying, “For all our products, we are denied access to Chinese lower cost inputs while at the same time having to compete on price with subsidized Chinese products. We therefore believe that any action taken by the President under the Section 232 investigation should exclude U.S. imports of aluminum and aluminum products from countries that abide by trade laws.”

The U.S. industry depends upon high-volume products alongside high value-added products. Therefore, not stemming the inflow of high-volume products like aluminium cans from China would be detrimental to the economy, Brock noted.