Aluminum battle brews over U.S. union’s effort to impose tariffs
The federal government and members of Canada’s aluminum industry are expressing frustration over an effort to impose a 50 per cent tariff on aluminum imported into the U.S., most of which comes from north of the border.
The United Steelworkers union filed a petition Monday with the U.S. International Trade Commission that aims to stem the flow of imported primary unwrought aluminum it claims has decimated the American industry and jobs. About 6,500 workers in the U.S. aluminum sector have been laid off since 2011, when production was four times the volume it is today.
Aluminum prices are roughly US$1,500 a tonne. Under the union proposal, a tariff would add about $750 to that.
“It’s uncalled for and very protectionist in the context of a global North American industrial value chain,” said Jean Simard, president of the Aluminum Association of Canada. Simard declined to speculate on whether such a duty would lead to production declines or job losses in Canada. The country accounts for about 65 per cent of U.S. aluminum imports.
A spokesman for International Trade Minister Chrystia Freeland said the government is urging the union to withdraw the petition.
“Canada is deeply troubled by the action initiated by the U.S. Steelworkers Union,” Alex Lawrence said in an email.
“Restrictions on Canadian exports will do nothing to deal with global overcapacity. Canada and the United States must address this issue of overcapacity in a strategic manner, together, and in the interests of all our workers.”