President Trump is reimposing an additional 10 percent tariff on non-alloyed unwrought aluminum articles from Canada, effective for subject goods entered or withdrawn from warehouse for consumption on or after 12:01 am EDT on Aug. 16.
Affected companies can petition for an exclusion from this tariff. For more information on the products covered by the new tariff and whether and how to request an exclusion, please contact Kristen Smith or Nicole Bivens Collinson.
The U.S. imposed a section 232 tariff of 10 percent on aluminum products imported from Canada in June 2018, following which Ottawa levied retaliatory tariffs on goods from the U.S. Both sides lifted their tariffs in May 2019 after they agreed on a range of measures expected to allow imports of aluminum from Canada to remain stable at historical levels without meaningful increases.
However, the Department of Commerce has advised the president that imports of non-alloyed unwrought aluminum from Canada surged 87 percent in the 12 months after the tariff was lifted. As a result, the U.S. is reimposing the 10 percent tariff on such goods as of Aug. 16.
Any imports of such goods that were admitted into a U.S. foreign-trade zone under privileged foreign status prior to the effective date will be subject to the 10 percent tariff upon entry for consumption after that date. However, subject goods will not be assessed this tariff merely by reason of manufacture in a U.S. FTZ.
In addition, no drawback will be available with respect to this tariff.