Updated: 11-FEB-2025
U.S. Raises Aluminum Tariffs to 25% Amid National Security Concerns
This information summorizes the Presidential Actions, "Adjusting Imports of Steel into The United States"
The United States is increasing tariffs on aluminum imports from 10% to 25% starting March 12, 2025, as a response to rising imports that threaten domestic production and national security. This policy shift reverses previous exemptions and trade agreements with key allies, citing continued global excess capacity and tariff evasion as major concerns.
Key Changes in Aluminum Trade Policy
Increased Tariffs: The tariff on aluminum imports will rise from 10% to 25% to protect domestic production and ensure long-term security.
End of Exemptions: The U.S. is terminating special trade agreements with Canada, Mexico, the EU, the UK, Argentina, and Australia, meaning imports from these countries will now be subject to the full tariff.
Expanded Tariff Coverage: Additional downstream aluminum products will now be included to prevent tariff evasion.
Crackdown on Chinese Influence: Chinese investment in Mexico has surged, with evidence of transshipment and circumvention of U.S. trade policies. The U.S. aims to stop Chinese aluminum from entering through Mexico.
End of Product Exclusions: The product exclusion process is being terminated, limiting companies' ability to seek exemptions.
Why Is This Happening?
Despite the original 10% tariff (2018), aluminum imports have continued to rise, undermining U.S. producers.
Imports from Canada increased 18% compared to pre-tariff levels.
Imports from Mexico surged 35%, fueled by Chinese and Russian-sourced aluminum.
Imports from Australia more than doubled (103% increase).
Domestic production fell by 30% since 2020, forcing two major smelters to shut down.
The U.S. aluminum industry is struggling to maintain an 80% production capacity utilization rate, the benchmark for long-term sustainability. The government argues that foreign overproduction, unfair trade practices, and loopholes in past agreements have weakened the intended impact of the tariffs.
Impact on the Supply Chain
U.S. aluminum producers are expected to benefit from reduced import competition.
Manufacturers relying on imported aluminum will face higher costs and may need to adjust sourcing strategies.
Importers and distributors will need to ensure compliance with the new tariff rules.
Looking Ahead
The U.S. government will monitor the impact of these measures and take further actions if necessary. For businesses in aluminum-dependent industries, it’s crucial to prepare for supply chain adjustments and compliance requirements.
For more details, visit the U.S. International Trade Commission or consult with trade compliance experts.