On March 23, the Chinese government announced its intent to target 128 U.S. product exports in retaliation for the Trump Administration's imposition of tariffs on steel and aluminum imports. On the Chinese Government's list is the intent to impose a 25% import tariff on Harmonized Tariff Code 7602.00 – Aluminum Waste and Scrap.
In 2017, the United States exported more than $1.2 billion worth of aluminum scrap to China, which has been in a positive trade balance for more than a decade. The Chinese Government's announcement will impact this significant U.S. scrap export, spurring concern that exports of additional scrap commodities could be impacted in future announcements.
The tariffs will not be imposed immediately but will be a part of a second wave of implementation. There are reports that the U.S. and Chinese Governments are quietly negotiating ways to address U.S. trade concerns and avoid a trade war but if a deal is not struck within 30 days, then the tariffs on aluminum scrap will go into effect.
ISRI continues to work with the Administration and members of Congress to find a path towards minimizing the impact of these tariffs, but our work is greatly enhanced if we can share stories of real-time market impacts of these measures and would welcome you to share your story with us. Any information we share will not be attributed to any individual or company name.
Please contact Adina Renee Adler
if you have any questions or to share your concerns and stories. This will also be addressed in the Trade Committee and the Aluminum Spotlight at ISRI2018