The United States has elevated its tariffs on aluminium imports from Russia to 35% from 10.5%-11.0%, taking effect in 30 days. Aluminium product details subject to these new tariffs have not yet been announced. However, it would not influence the MW premium, but it would have a bullish impact on spot billet, PFA, and slab premiums.
Tariffs were raised on certain Russian imports by the US on 27th June 2022, including aluminium. The President of the United States Joe Biden delivered a presidential proclamation announcing a 35% tariff on certain US imports from Russia. While the day’s proclamation did not provide details about products, USTR Katherine Tai confirmed in a statement that aluminium is among the products covered by this decision. The official detailed information is yet to be released.
Now based on current LME prices and premiums, the Russian tariff component (excluding Section 232 duties) could reach 58 cents/lb from 18 cents/lb currently.
The increased tariffs in approximately 30 days will become effective. The US tariffs applied on Russian aluminium importation would soar more than triple to 35% for both unalloyed primary aluminium (P1020, purity, off-grade ingot) and value-add aluminium products (billet, slab, foundry and wire rod). In April 2022, the US had already imposed punitive duties of 10.5% on P1020 and 11% on value-add products, after withdrawing from Russia’s Permanent Normal Trading Relations status.
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