USTR Rescinds 10% Tariff on Canadian Aluminum

On September 15, 2020, the Office of the U.S. Trade Representative (USTR) announced the rescission of Section 232 tariffs on Canadian aluminum, retroactive to September 1, 2020. The 10% tariff on non-alloyed, unwrought aluminum products from Canada was announced on August 6, 2020 and went into effect on August 16. Following USTR’s announcement of the tariffs in August, Canada responded with retaliatory tariffs on U.S. products that it intended to implement on September 16, 2020.
USTR’s rescission determination was made following consultations with the Canadian government. According to the USTR, aluminum exports from Canada are “likely to normalize in the last four months of 2020” from the high levels experienced earlier in 2020. However, USTR could decide to reinstitute the tariffs at a future date if imports from Canada exceed 105% of the expected volume in any month.
The U.S. intends to consult with the Canadian government near the end of 2020 to review the state of the aluminum trade and will consider trade patterns during the four-month period (September - December) and expected market conditions in 2021.
For more information about these and other trade developments, please contact a BDO Customs and International Trade Services professional.