On April 11, 2025, the United States International Trade Commission (USITC) reportedly determined to issue antidumping duty orders and countervailing duty orders that imports of disposable aluminium containers, pans, trays, and lids from China are causing material injury to the US industry. The Commission found that these products are sold in the US at less than fair value and are subsidised by the Chinese government. This decision follows a complaint filed in May 2024 by the Aluminum Foil Container Manufacturers Association (AFCMA) and its member companies, including Durable Packaging International, Handi-foil Corp., and Reynolds Consumer Products. USITC plans to publicly post its full report about the aluminium container determination by May 26, 2025.
Image for representational purposes only
In response to the USITC's determination, the US Department of Commerce will issue antidumping and countervailing duty orders on these imports. These duties are in addition to any existing tariffs. They are aimed at levelling the playing field for domestic producers who have been losing sales and reducing prices to compete with low-priced imports from China.
“The International Trade Commission’s determination will provide much-needed relief to domestic producers of disposable aluminium containers that were losing sales and being forced to lower their prices to compete with extremely low-priced imports from China,” John Herrmann, counsel to AFCMA, said in a news release.
China's aluminium foil production has been on an upward trajectory. In 2024, production reached approximately 4.8 million metric tonnes, marking an 8 per cent increase from the previous year. This growth is attributed to rising demand in the packaging, automotive, and electronics sectors.
On the export front, China shipped about 1.55 million tonnes of aluminium foil globally in 2024, an 18.3 per cent increase from 2023. The United States, however, experienced a slight decline in imports from China, receiving approximately 74,176 tonnes in 2024, down from 76,818 tonnes in 2023. This decrease is partly due to existing tariffs and the anticipation of stricter trade measures.
The USITC's ruling introduces new antidumping and countervailing duties on Chinese aluminium foil containers, aiming to counteract unfair pricing and government subsidies. This action is expected to increase costs for US importers, potentially leading to higher prices for end consumers. Importers might seek alternative suppliers from countries like Thailand and Vietnam. However, the AFCMA has expressed concerns about potential transhipment practices to circumvent duties, indicating plans to investigate such activities.
The USITC's decision could set a precedent, encouraging other nations to scrutinise Chinese aluminium imports more closely. This heightened scrutiny may lead to trade diversions, with countries not imposing duties seeing an influx of Chinese aluminium products, affecting local industries. Fluctuations in supply and demand dynamics could lead to price instability in the global aluminium market. With increased costs associated with primary aluminium imports, there may be a push towards using recycled aluminium, benefiting the environment and reducing import dependency.
However, on the other hand, beyond packaging, sectors from automotive to construction will feel the reverberations of the newly induced tariff. Higher aluminium costs can feed through to vehicle body panels, window frames and structural components, potentially slowing vehicle production and building projects or incentivising material substitution.
Conversely, stronger domestic pricing in the US may encourage new investments in smelting and fabrication facilities, a trend already visible in Europe and North America as governments seek to onshore critical metal supply chains.
Sustainability considerations also intersect with trade policy. At COP28 in Dubai, the International Aluminium Institute launched its Aluminium Industry GHG Initiative, committing to the annual reporting of global greenhouse gas emissions and tracking member targets for decarbonisation. By raising the cost of low-priced, carbon-intensive Chinese primary metal, duties may inadvertently favour greener, higher-cost producers in Europe and North America, accelerating investments in inert‑anode technology and renewable-powered smelting.
Ultimately, for global aluminium producers, fabricators and end‑users, the message is clear: supply chains must be resilient, diversified and increasingly circular if they are to thrive in a market defined by surging capacity, geopolitical friction and the imperative to decarbonise.
Information credit: https://www.packagingdive.com/
Responses
