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AAC Warns Against Tariffs on Imported Primary Aluminum

Monday, January 8, 2018   (0 Comments)
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AAC Warns against Tariffs on Imported Primary Aluminum

Wauconda, Illinois – With a decision on the Aluminum Section 232 Investigation due within the next week, the Aluminum Anodizers Council warns that any tariffs placed on primary aluminum will have a boomerang effect on the downstream consumers of aluminum products. Tariffs on imported primary aluminum products will be passed along the value chain until it impacts consumers. Furthermore, tariffs will make U.S. manufacturers of aluminum products even less competitive against low-cost producers like China.

“What are at stake here are the U.S. manufacturing jobs that make products using aluminum that compete in a global market,” said Jack Tetrault, the Chairman of the Aluminum Anodizers Council and President of U.S.-based Sanford Process Corp. “U.S. manufacturers may have to move facilities out of the U.S. if they are denied the global price for aluminum,” he continued.

Products such as windows and doors, storefronts, and curtainwall, compete for U.S. projects against a host of global competitors. The tariff will drive a price increase to the market that no other country will have to carry. That additional price burden on U.S. manufacturers will cost them business. The loss of that business will negatively impact aluminum anodizers. “With up to 70% of all anodized products going into the building and construction space, we are very vulnerable to non-value-adding price increases that we will be forced to pass along,” said Mr. Tetrault.

The Aluminum Anodizers Council has come out publicly in support of the Aluminum Extruders Council’s proposed remedy to place an aluminum content tariff on all Chinese imports. Like the extruders, the AAC sees China as their primary competitor in the global market. Even with the Aluminum Extruders Council’s trade protection against China that places a tariff on the aluminum extrusion content in many building and construction end uses, the Chinese still win projects and jobs from U.S. providers. A primary tariff will only give China a further price advantage.