Trump threatens to impose tariffs on Australian aluminum. Alcoa and Rio Tinto are stunned by Alcoa’s exports

2019-09-20


The Morrison government has warned that aluminum producers such as Alcoa and Rio Tinto will control the surge in exports to the United States to avoid US President Trump’s trade restrictions on Australia.

In March 2018, Trump imposed a 10% tariff on certain countries for aluminum exports from the United States and imposed import quotas. Australia was exempted. According to statistics, aluminum shipments from Australia to the United States jumped from 11,600 tons in the first quarter of 2017 to 84,000 tons in the first quarter of 2019. Australia's exports of aluminum to the United States accounted for 6% of US aluminum imports, higher than the US's 2% before tariffs, resulting in the Trump administration issued a new tariff threat in recent months.

Unconfirmed industry estimates suggest that companies restricting aluminum exports to the US have “erased” 120,000 tons of aluminum exported from Australia to the US, with an estimated value of A$300 million.

Industry and government sources said that when Washington threatened to impose tariffs, the Morrison government told companies such as Alcoa, Rio Tinto, Hydro Hydro and CITIC to take a step back. These companies were asked not to sign new supply contracts for 2019, to cancel existing contracts as much as possible or to export goods to countries such as Canada.(From CBC)