Section 232 Aluminum Tariffs – What has been their impact?

The United States domestic primary aluminum industry is expanding production, hiring workers, and increasing reinvestment. Policymakers should commit to keeping the Section 232 protections to support the U.S. domestic aluminum industry.

Section 232 of the Trade Expansion Act of 1962 allows the President to impose import restrictions based on an investigation and affirmative determination by the Department of Commerce that certain imports threaten to impair the national security.

Find out about the impact that these tariffs have had on the domestic primary aluminum industry here.

American Primary Aluminum Association Strongly Supports the Continuation of the Section 232 Aluminum Program

Washington, D.C., Oct. 05, 2021 (GLOBE NEWSWIRE) — The American Primary Aluminum Association (APAA), whose members represent the vast majority of U.S. primary aluminum production and employ thousands of American aluminum workers, strongly favor the continuation of the Section 232 aluminum program. Contrary to claims made by associations representing foreign producers, the domestic primary aluminum industry supports a well-crafted tariff-rate quota (TRQ) for the European Union to preserve the effectiveness of the Section 232 program. These common-sense tariffs saved the American primary aluminum industry and are allowing the domestic industry to rebuild, which is critical to U.S. national and economic security.

Prior to the institution of the Section 232 program, all of America’s primary aluminum smelters were slated for closure as a result of the collapse in prices due to the global excess capacity crisis. As a result of the Section 232 program, the U.S. primary aluminum has stabilized and has begun the long process of rebuilding what was lost to decades of the devastating effects of global excess capacity.

Now, U.S. producers have the confidence that their investments are viable. Our members continue to increase domestic aluminum production, with active expansion and hiring programs across the U.S., including in places like Goose Creek, South Carolina, Hawesville, Kentucky and New Madrid, Missouri. The reinvestment in the U.S. primary aluminum industry has only just begun.

Calls from foreign trade groups seeking to phase down the tariff seek only to benefit their affiliated semi-finished European production rather than Building Back Better by investing in American manufacturing and American jobs throughout the entire value chain.

The domestic primary aluminum industry supports a well-crafted tariff-rate quota (TRQ) for the European Union to preserve the effectiveness of the Section 232 program and does not support a phase down of the tariff. The Section 232 program continues to drive investment, expansion and the creation of new jobs in the American aluminum industry, both upstream and downstream. The program should remain in place to allow this critical U.S. industry to continue to recover as we Build Back Better.

About the American Primary Aluminum Association:

The American Primary Aluminum Association advances the interests of America’s primary aluminum industry and its workers through the Aluminum Now campaign. APAA is registered and incorporated in Washington, DC and operates as a non-profit trade association. For more, please visit: www.aluminumnow.org

Century Aluminum CEO Jesse Gary: Section 232 program is vital for high-paying jobs

This article by Century Aluminum CEO Jesse Gary originally appeared in the South Carolina Post and Courier on June 4, 2021.

 

[This week], we were honored to welcome Gov. Henry McMaster and U.S. House Majority Whip Jim Clyburn to usher in a new era of growth for the Mount Holly aluminum smelter. Century Aluminum, America’s largest primary aluminum producer, is increasing production at the Goose Creek smelter by 50%, including investing more than $60 million and creating about 100 good-paying jobs.

 

This was only possible thanks to the leadership of Gov. McMaster, Rep. Clyburn and our Century team members in South Carolina as we work together to support Palmetto State families. We are proud that the Mount Holly aluminum smelter will now provide more than 400 direct aluminum jobs and create more than $500 million of overall economic activity in the Lowcountry.

 

Our smelter is the newest and most efficient smelter in the United States and produces products that are a vital part of our country’s national defense infrastructure. The aluminum produced in South Carolina is a key input for modern building materials, medical equipment, electrical vehicles and the renewable energy components that are essential to a low-carbon future in the United States. U.S. aluminum products also are used to create fighter jet skins and structures, armor plating for troop carriers and naval vessels, and propellants for missiles and other aerospace applications.

 

According to a recent report by the Economic Policy Institute, in order for the U.S. primary aluminum industry to keep producing the quantities of aluminum we need, the Section 232 program must remain in place. The EPI report highlights how the Section 232 program has led to more than $6 billion in investments in 55 aluminum manufacturing projects since the initiation of the program in March 2018, creating nearly 4,500 additional jobs.

 

Despite the success of the program, global overcapacity in aluminum is still a major problem. A recent study from the Organization for Economic Cooperation and Development found that nations around the world, from China to India to the Middle East, have poured billions of dollars into subsidizing and creating aluminum industries in their own countries given the critical role that aluminum plays in national security.

 

These subsidies have created significant overcapacity that has had a devastating effect on the U.S. industry. Since 2001, 17 smelters have closed their doors in the United States, leaving only six operating today. If the U.S. primary aluminum industry were to completely shut down, we would be forced to obtain aluminum critical for our national defense from our geopolitical rivals like Russia and China, and Middle Eastern nations.

 

The good news is that since the Section 232 program went into effect, the program has led to investments that have increased America’s domestic aluminum production by more than 60% and allowed plants like Mount Holly to create thousands of new American aluminum jobs. As the U.S. primary aluminum industry continues to rebuild, families in South Carolina and across our great nation benefit.

 

Just a few years ago, the forecast was cloudy for Mount Holly and the rest of the U.S. aluminum industry. Today, thanks to the 232 program, Century Aluminum is proud to be celebrating this new $60 million investment and 100 new jobs here in the Palmetto state.
 
Jesse Gary is the incoming president and chief executive officer of Century Aluminum.