United States considers tariffs on Russian aluminum

United States considers 200% tariffs on Russian aluminum

The United States is preparing to apply a high 200 percent duty on aluminum from Russia as soon as possible. Recently, the United States has been putting pressure on Russia as the first anniversary of the invasion of Ukraine approaches. Joe Biden’s presidency has not given the official final go-ahead and there are concerns from his administration about the possible collateral damage this could cause to U.S. industry.

The tariff sanction, which has been contemplated for months, is also aimed at Russia, the world’s second-largest aluminum producer, because Moscow has been dumping supplies on the U.S. market and hurting companies.

The media asked questions to the National Security Council located at the U.S. President’s residence, but there was no response. Sanctions against Moscow have reached unprecedented levels after Washington launched an ever-increasing pressure to punish and…

The United States seeks to isolate Vladimir Putin’s government, including freezing bank assets worldwide, to target banking operations. For the time being, there are no indications that the European Union is planning to take a similar decision with respect to aluminum produced in Russia.

Russia, the world’s largest aluminum producer after China, is a significant source of material for the U.S. market. Most of it comes from there. If such a high tariff were to be applied, this would actually wipe out metal imports from Russia to the United States. While the country has historically been one of the main suppliers of this material, the imposition of this tariff would change the scenario.

U.S. trade data reveals that, the country’s total share of aluminum imports has declined to just over 3%, instead of the 10% originally reported. The option on tariffs would be less severe than actions considered last year by the administration, including an outright ban or reduction of services.

The U.S. administration imposed sanctions on the sole producer of the metal, United Co. Rusal International PJSC. This action could trigger greater risk in global markets. The move meant that Russian supplies were virtually toxic to buyers around the world.

Shares in Rusal fell 3%, prompting comments from those in Moscow. The company declined to make any statement regarding this news.