Aluminum Group Tells Biden Shutdowns Likely if Tariffs Removed

(Bloomberg) -- The American Primary Aluminum Association said in a letter to President-elect Joe Biden that remaining U.S. smelters of the metal will likely be forced to shutter if import tariffs imposed by the Trump administration are removed.

The group said global subsidized overcapacity continues to put the U.S. in “peril” regardless of whether the imported sources come from trade allies or strategic competitors, according to the letter, which the APAA shared with Bloomberg. Imports from all sources must be subject to the program, with leeway for different treatment based on the source, the APAA says.

The APAA, which represents Century Aluminum Co. and Magnitude 7 Metals LLC, has been a vocal supporter of President Donald Trump’s 10% duty on imported aluminum. This position has been at odds with another industry group, the Aluminum Association, that represents Alcoa Corp., Rio Tinto Group and dozens of other aluminum-parts makers that don’t support the tariff.

“If any sources are excluded from Section 232 coverage, imports from that source drive prices down throughout the market and undermine the positive price effects of the Section 232 measures as a whole,” Mark Duffy, the chief executive officer of the APAA, said in the letter. “If the Section 232 measures are removed before balance is restored in the global market through the elimination of excess capacity and trade distorting subsidies, it is likely that the remaining U.S. smelters will be forced to shut down.”

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