On February 18, 2025, the U.S. administration announced a significant adjustment to aluminium import tariffs, increasing duties to 25% on all aluminium products. This measure is aimed at strengthening domestic aluminium production, addressing global overcapacity, and mitigating unfair trade practices. The new tariffs will take effect from March 12, 2025.
This decision will have major implications for UK aluminium exporters, as previous tariff exemptions and trade agreements have been revoked. ALFED members exporting aluminium to the U.S. should carefully review these changes and assess their impact on trade and business operations.
Key Points of the Tariff Adjustment
- Increase in Tariff Rate
The import tariff on aluminium has been increased from 10% to 25%, effective March 12, 2025. - Removal of Previous Agreements & Exemptions
Countries that previously had alternative trade arrangements, including the United Kingdom, Canada, the European Union, and Japan, will no longer benefit from tariff exemptions. This means all aluminium exports to the U.S. will be subject to the 25% tariff. - Scope of Affected Products
- The tariff applies to aluminium articles and specific derivative products.
- Recycled aluminium (aluminium scrap) remains excluded, ensuring that secondary aluminium exports are not impacted by this measure.
- Implementation Date
The tariff increase will take effect at 12:01 a.m. EST on March 12, 2025. - Justification & National Security Considerations
- The U.S. administration has cited national security concerns as a key reason for the tariff increase, stating that import reliance weakens the resilience of the domestic aluminium industry.
- The move is also aimed at reducing unfair competition and protecting U.S. manufacturers from global overproduction of aluminium.
Potential Impact on ALFED Members
- Increased Costs for UK Aluminium Exports
- UK exporters selling aluminium products to the U.S. will face higher costs due to the 25% tariff.
- This may result in reduced competitiveness in the U.S. market and potential trade volume reductions.
- Supply Chain Adjustments & Market Reactions
- The tariff is expected to have wider implications for industries that rely on aluminium, including automotive, aerospace, and construction.
- Companies may need to explore alternative export markets or adjust supply chains to mitigate the impact of increased costs.
- Policy & Trade Relations
- The revocation of prior tariff agreements could lead to further trade tensions between the UK and the U.S.
- ALFED will continue to monitor discussions between the UK Government and U.S. trade officials to advocate for fair trading conditions for UK aluminium manufacturers.
What Should ALFED Members Do Next?
- Assess Business Impact
- Review current and upcoming aluminium exports to the U.S. and evaluate cost implications.
- Consider strategic pricing adjustments or alternative market opportunities.
- Stay Informed on Trade Negotiations
- ALFED will be providing ongoing updates as discussions evolve between the UK Government and U.S. officials regarding potential trade remedies or exemptions.
- Engage with ALFED for Support
- ALFED is actively advocating for UK aluminium producers and working to provide guidance on navigating this new trade landscape.
- Members are encouraged to share any concerns or insights that could support ALFED’s trade policy engagement efforts.
For more details, members can review the full U.S. Federal Register announcement here:
???? Official Proclamation on U.S. Aluminum Import Tariffs
For any questions or assistance, please contact the ALFED team at alfed@alfed.org.uk. We are here to support our members in adapting to these trade policy changes.
