The US is preparing a maxi-duty on Russian aluminium
The United States is considering a 200 percent tariff on Russian aluminum. Moscow is the second largest producer in the world. All the details
The United States may soon, possibly as early as this week, impose a 200 percent tariff on Russian aluminum as a form of economic retaliation for its invasion of Ukraine.
IS RUSSIA DUMPING AGAINST THE UNITED STATES?
The news was reported by Bloomberg , which however specifies how President Joe Biden has not yet officially approved the tariff, which has been discussed for months.
In fact, within his administration there would be concerns about the possible unintended consequences of the measure on American industry, in particular on the automotive and aviation sectors. Russia is the second largest producer of aluminum in the world, after China.
The voices in favor of the tariff instead underline how Moscow is harming US steel producers through dumping operations: that is, Russia sells its alloy on the American market at a lower price than that charged on the domestic market.
ALUMINUM AND MORE: THE USA AND THE EU WANT TO CUSH RUSSIAN TRADE IN RAW MATERIALS
As Bloomberg explains, the aluminum tightening is not an isolated move. On the contrary, for almost a year – the invasion of Ukraine began on 24 February 2022 – the United States and the European Union have been trying to undermine Russia's role as an exporter of raw materials, both energy and industrial, to damage its economy and make it more difficult for the Kremlin to finance the war.
Brussels, for example, recently banned the import of Russian petroleum products, after already embargoing crude oil in December. However, it does not appear to have any intention of imposing a tariff on Russian aluminium.
HOW MUCH IS RUSSIAN ALUMINUM WORTH FOR THE UNITED STATES
Traditionally Russia has been a major supplier of aluminum to the United States, with a 10 percent share of total imports. Today, however, its presence on the American market has dwindled to just over 3 percent. And if the Biden administration were to impose a 200 percent tariff, Russian aluminum purchases would fall to zero.
A MODERATE RETALIATION?
According to Bloomberg , the tariff on imports would be a moderate retaliation compared to the other options examined by Washington. For example, the Biden administration was considering a purchase ban or sanctions on Rusal, but these would have had a profound impact on the global aluminum market (Rusal is the second largest aluminum producer in the world).
The Aluminum Association, the association of the US aluminum industry, has sided with the Biden administration because – reads a statement – Russia's economic contrast after the aggression against Ukraine is an issue "that far beyond the interests of any single industry”.
Last October, imports of Russian aluminum by the United States were practically zeroed by the news of a possible ban by the government. In November, purchases rose again to 11,600 tons, only to drop again in January (9,700 tons).
– Read also: US and EU are preparing to impose tariffs on Chinese aluminum and steel
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/stati-uniti-dazio-alluminio-russo/ on Tue, 07 Feb 2023 15:03:27 +0000.