Please ensure Javascript is enabled for purposes of website accessibility

New U.S. Tariffs Announced on Aluminum Sheet Products

By Howard Smith – Oct 9, 2020 at 5:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After the Commerce Department determined aluminum sheet products were being dumped in the U.S., tariffs are being applied against 18 countries.

U.S. Commerce Secretary Wilbur Ross announced today that new tariffs will be applied to $1.96 billion worth of aluminum sheet products being imported into the country. Ross cited preliminary findings from the Commerce Department determining that 18 countries are dumping the goods into the U.S. market.

Dumping refers to the practice of exporting goods that are then sold at a price below what they would sell for in the manufacturer's home market, and often lower than the cost of manufacturing the product. 

Coils of aluminum sheet stacked outside a manufacturing warehouse.

Image source: Getty Images.

Companies and countries often dump goods illegally to gain a foothold in the importer's market or as a way of keeping the domestic industry operating, sometimes with the help of government subsidies. 

Secretary Ross said that, though the findings are preliminary, tariffs of up to 132% in the case of German-made products would be applied immediately. He added that the final determination on the products would be made by the U.S. International Trade Commission in February 2021. 

In addition to Germany, other countries with tariffs being applied include Brazil, Egypt, India, Greece, South Korea, Spain, Taiwan, and Turkey, among others. Tariff rates are mostly in the single digits, Ross said in the announcement, according to Reuters.

Ross also said that the use of aluminum sheet has increased during the COVID-19 pandemic with the growing popularity in items such as recreational vehicles and boats. 

Last month, the U.S. dropped plans for imposing a 10% tariff on Canadian aluminum products after determining that imports were likely to decline and that Canada was expected to impose a retaliatory response. 

The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.