Aluminum Producers Cash In On US Tariff Exemption
July 23, 2019—Canada's exemption from U.S. tariffs on imports of aluminum metal has boosted earnings at the Canadian operations of companies such as Rio Tinto and Alcoa, according to a report by Reuters.
Alcoa chief financial officer William Oplinger said at a briefing that the company could anticipate a benefit of approximately $200 million from 232 tariffs.
In May, the U.S. lifted the Section 232 tariff of 10 percent imposed on Canadian imports of aluminum.
Aluminum is used to make cans and extrusions, which are solid, semi-hollow and hollow shapes for home appliances and automakers. Higher costs are either passed through the supply chain or absorbed by end consumers.