Earlier today, as expected, President Trump signed an executive order imposing a 10% tariff on imported aluminum, except from Canada and Mexico.
He said the measure was “necessary and appropriate in light of the many factors I have considered, including the Secretary’s report, updated import and production numbers for 2017, the failure of countries to agree on measures to reduce global excess capacity, the continued high level of imports since the beginning of the year, and special circumstances that exist with respect to Canada and Mexico.
“This relief will help our domestic aluminum industry to revive idled facilities, open closed smelters and mills, preserve necessary skills by hiring new aluminum workers, and maintain or increase production, which will reduce our Nation’s need to rely on foreign producers for aluminum and ensure that domestic producers can continue to supply all the aluminum necessary for critical industries and national defense.”
Beer Institute put out a statement at 4:56 p.m. asking for an exemption for imported aluminum used to make beer cans but acknowledged “We have not yet seen the order formalizing these tariffs.”
Trump’s tariff order was issued under a statute authorizing tariffs when needed to protect the U.S. industrial base essential for national security.
McGreevy said the Beer Institute appreciates “President Trump’s commitment to protecting American jobs. We know that he wants to defend all American workers and our nation’s aluminum industry. However, these tariffs will do the opposite. A 10% tariff would be a new $347 million annual tax on America’s brewers and beer importers and could lead to the loss of more than 20,000 American jobs from people whose livelihood depends on the U.S. beer industry.”
In exempting Canada and Mexico, Trump said they “present a special case. Given our shared commitment to supporting each other in addressing national security concerns, our shared commitment to addressing global excess capacity for producing aluminum, the physical proximity of our respective industrial bases, the robust economic integration between our countries, the export of aluminum produced in the United States to Canada and Mexico, and the close relation of the economic welfare of the United States to our national security, see 19 U.S.C. 1862(d), I have determined that the necessary and appropriate means to address the threat to the national security posed by imports of aluminum articles from Canada and Mexico is to continue ongoing discussions with these countries and to exempt aluminum articles imports from these countries from the tariff, at least at this time. I expect that Canada and Mexico will take action to prevent transshipment of aluminum articles through Canada and Mexico to the United States.”
He also said the U.S. would be willing to enter into discussions with other nations that might lead to lifting the tariff as it applies to their countries.