A trade war between Canada and the United States is imminent due to tariffs imposed on the former’s aluminum and steel by the latter. This decision made by the President of the United States will have a substantial impact on American consumers, especially those looking to purchase new cars and boats for summer leisurely activities.
When import duties of 25% on steel and 10% on aluminum were first imposed in March, 2018, Canada, Mexico, and the European Union were exempt from them. This exemption expired at midnight on June 1, 2018. U.S. Secretary of Commerce Wilbur Ross cited that North American Free Trade Agreement negotiations were “taking longer than we had hoped” as the reason for its termination. The President of the United States further cited national security reasons as the reason for his decision.
Canada’s Reaction to the Announcement
Canadian Prime Minister Justin Trudeau did not take the news lightly, immediately calling upon President Trump to remove the U.S. tariffs. Should tariffs not be removed, Trudeau threatened to place tariffs on a number of U.S. products, including whiskey, iron, and steel. Trudeau also cited the North American Free Trade agreement, stating that its success lies in President Trump’s hands and whether or not he will go through with the tariffs.
Tariff Implications on Both Americans and Canadians
U.S. tariffs are unlikely to deliver a blow to Canadian aluminum producers, who supply 47 per cent of the aluminum consumed in the United States.
Analysts, on the other hand, are predicting a negative impact on Americans, who are not self-sufficient when it comes to aluminum production. American manufacturers rely on levy-free Canadian products to manufacture products at reasonable prices. The tariffs will undoubtedly cause prices to soar throughout the United States on products made from aluminum and steel; something they have been able to avoid until now.
The main reason for the prediction is the deficit between supply and demand. The United States consumes 5.5 tonnes of aluminum each year. Its local smelters are only able to produce 700,000 tonnes of aluminum. Before the tariffs came into force, manufacturers were able to cover the shortfall with shipments of 2.8 million tonnes of aluminum from Canada. Americans will still have to turn to other countries for supply, but this time at a more unaffordable price.
Reviving idled smelters to full production in the United States would be a costly exercise, one that would take years to accomplish. And even then, production would rise to a maximum of 2 million tonnes, well short of satisfying the country’s appetite for aluminum.
How Recycled Aluminum Addresses Shortfalls in Aluminum Supply
Reading about the trade talks between U.S, and Canada, we cannot help but think of how recycled aluminum can help address the deficits in aluminum demand. Manufacturers do not have to rely solely on raw aluminum materials for production. Aluminum is one of the most recycled and recyclable materials today, so much so that almost 75% of all aluminum ever produced in the U.S. is still being used today. The best part is that the quality of the metal does not change with the times it is used and recycled – aluminum can be recycled indefinitely.
Eccomelt356.2 is the closest prime on the market and an antidote to the shortfall of primary aluminum in the U.S. as its products are made solely from eco-friendly, recycled aluminum.
Is Eccomelt356.2, a Substitute for A356.2 Affected by the Tariffs?
Eccomelt is pleased to inform their customers as well as prospects interested in purchasing Eccomelt356.2, a substitute for A356.2 ingot, sow, and t-bar, that it remains unaffected by the newly proposed tariffs. In fact, our product is proudly ‘Made in America” from locally sourced, recycled products. Our factory, based in Georgia, ensures you an eco-friendly, economical, and good-quality delivery for a competitive price.
Eccomelt356.2 | Direct Substitute for A356.2 Ingot, Sow & T-bar
Alongside Alcan R&D, Eccomelt has developed a patented revolutionary process that produces a specification alloy from aluminum wheels at a lower cost than traditional methods and that meets that EPA definition of CLEAN CHARGE.
Eccomelt ships products to foundries within North America including the United States, Canada, and Mexico, and worldwide, such as France, Ireland, Italy, Serbia, and Spain. Our product is the material of choice for many consumers because it is chemically pure and environmentally-friendly. Its shredded form has achieved higher melting rates than Ingot, Sow or T-Bar. Environmental testing has also proven the process eliminates all coatings.
If you are an industry affected by the tariffs and proposed sanctions and looking for alternatives please give us a call. We can be contacted at (888) 356-9557 or visit our website and fill out our contact form.