U.S. seeks to raise pressure on Russia with 200% aluminum tariff

The U.S. will apply a 200% ad valorem tariff on imports of aluminum and derivative aluminum articles from Russia starting March 10, the Biden administration said Friday, as it seeks to increase pressure on Russia's economy in response to its war in Ukraine.

Alcoa (NYSE:AA), Century Aluminum (NASDAQ:CENX), Rio Tinto (NYSE:RIO) and other aluminum companies doing business in the U.S. have lobbied the White House for months to slap sanctions, bans or tariffs on Russian aluminum, but the levies likely will do little to boost profits and production for the companies.

The U.S. imported ~200K tons of aluminum from Russia in 2022, accounting for 3% of total imports, which dropped nearly to zero in October as the administration's talk of a possible ban caused concerns that domestic buyers could be stuck with the metal.

Global aluminum prices have plunged 40% since reaching a record in March following the invasion, hurting producer margins and share prices.

Alcoa (AA) shares have gained 4% so far this year but lost 36% during the past 12 months.