U.S. Reimposes 10% Aluminum Tariffs on Canada; Canada Responds in Equal Measure

The U.S. will reinstate 10% tariffs on raw aluminum imports from Canada beginning August 16. The move follows a May 2019 decision to remove tariffs on Canadian steel and aluminum imports, saying the imports no longer threatened national security.

 

In response, Canada will impose tariffs on $2.7 billion worth of imports from the U.S., Canadian Deputy Prime Minister Chrystia Freeland said Friday. The response is “dollar for dollar,” she said. “We will not escalate, and we will not back down.”

 

U.S. aluminum producers importing from Canada will have to pay the raw aluminum tariffs, and those costs could trickle down to manufacturers procuring aluminum parts or packaging domestically. That might encourage U.S. manufacturers to seek aluminum products from outside the U.S. at a lower total cost, making U.S. aluminum producers less competitive when selling their products to industrial customers, according to The Aluminum Association.