Alcoa asks for tariff exemption on imports of Canadian aluminum

By Reuters / August 06, 2018 / www.kitco.com / Article Link

WASHINGTON, Aug 6 (Reuters) - Alcoa Corp on Mondayasked the U.S. Commerce Department to exclude its purchases of atype of aluminum from Canada that is used to make cans fromtariffs the Trump Administration levied on aluminum and steel inJune.

According to documents posted to its website, Alcoa said noU.S. aluminum producer can meet its specification needs andquality requirements for rolling slabs used at its Warrick,Indiana plant to produce aluminum for can manufacturers.

Alcoa's applications for tariff waivers on 40,000 metrictons of rolling slab is the start of an effort to roll backtariffs on Canadian aluminum imports with more applications forexemptions from the No. 1 U.S. aluminum producer planned, acompany official said.

In one of its opening shots in what is becoming a globaltrade war, the United States set a 25 percent tariff on steelimports and a 10 percent tariff on aluminum imports from Canada,Mexico and the European Union in June. Alcoa said in July it will incur as much as $14 million amonth in extra expenses, mainly from tariffs levied on aluminumimported from Canada, its biggest supplier.

"Even if all the curtailed smelting capacity in the stateswas back online and producing metal, the United States wouldstill need to import the majority of its aluminum, and most ofit from Canada. We believe that the Section 232 tariffs shouldbe removed from Canada and other fair-trading partners," saidTim Reyes, president of Alcoa Aluminum, one of the company'sthree business units.

Alcoa Chief Executive Roy Harvey told investors on in Julythat the aluminum producer was in "active discussions" with theTrump administration, the Commerce Department and members ofCongress about the elimination of tariffs or getting anexception for Canadian aluminum. Alcoa on Monday filed five applications for one-yearexclusions from Section 232 tariffs on imports of "primaryaluminum alloyed slab" that it says is not available from anyother U.S. manufacturer.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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