By Dr. Bart S. Fisher, General Counsel of Luminium Coin
The contentious political argument over Section 232 aluminum tariffs has taken a new turn. The United States announced on March 24th, 2022, that it will replace its Section 232 tariffs on aluminum from the United Kingdom (UK) with tariff-rate quotas that will change the “historically-based sustainable volume of 21.6 thousand metric tons (TMT) of aluminum to enter the United States free of Section 232 tariffs each year.” On June 1st, 2022, the TRQs will go into force. The TRQ volume for aluminum is over double the average yearly import volume from the UK from 2015 to 2017, and is roughly 40% higher than the import level for 2021.
This is great news for the aluminum industry, consumers, and the economy as a whole. The reduction of tariffs will reduce the price of aluminum for its users and consumers, and will have an have an anti-inflationary effect on the economy. Clink on the link below for a useful note on the TRQ with the UK on aluminum and steel: