This morning in metals news: President Donald Trump on Thursday signed a proclamation to reimpose tariffs on some Canadian aluminum; China’s copper imports surged in July; and the Bureau of Labor Statistics released its latest jobs report Friday morning.
Trump reinstates 10% tariff on some Canadian aluminum
On Thursday, President Donald Trump issued a proclamation calling for the reimplementation of the Section 232 aluminum tariff of 10% on non-alloyed, unwrought aluminum from Canada.
“Imports of non-alloyed unwrought aluminum from Canada during June 2019 through May 2020 increased 87 percent compared to the prior twelve-month period and exceeded the volume of any full calendar year in the previous decade,” the proclamation reads.
The U.S. originally imposed Section 232 tariffs on steel and aluminum in 2018. After an initial exemption period, Canada faced the tariffs until May 2019. Then, the U.S. rescinded the tariffs during negotiations over the United States-Mexico-Canada Agreement (USMCA).
The USMCA went into effect July 1, 2020.
However, the Aluminum Association unsurprisingly expressed disappointment in the decision.
“We’re incredibly disappointed that the administration failed to listen to the vast majority of domestic aluminum companies and users by reinstating Section 232 tariffs on Canadian aluminum,” said Tom Dobbins, president and CEO of the Aluminum Association. “After years of complex negotiations and hard work by government, industry and other leaders across North America to make the U.S.-Mexico-Canada Agreement (USMCA) a reality, this ill-advised action on a key trading partner undermines the deal’s benefits at a time when U.S. businesses and consumers can least afford it.”
Dobbins added the Aluminum Association will continue to advocate for the removal of Section 232 tariffs on market-economy countries.
The reinstated 10% Canadian aluminum tariff will go into effect Aug. 16.
In light of the aforementioned, if you source from Canada, make sure you know the five golden rules of aluminum sourcing.
China’s copper imports jump in July
According to Reuters, Chinese copper imports rose to a record high for a second straight month in July.
Total copper imports increased 16.1% from the previous month and 81.5% year over year, Reuters reported.
Nonfarm payroll employment rises 1.8M in July
Nonfarm payroll employment rose by 1.8 million jobs in July, the Bureau of Labor Statistics reported Friday.
Furthermore, manufacturing employment increased by 26,000 in July.
In addition, employment in motor vehicles and parts rose by 39,000. On the other hand, employment in fabricated metal products fell by 11,000.
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