US President Joe Biden on April 17, citing "unfair competition", proposed to raise tariffs on Chinese steel and aluminum to 25% when he visited the headquarters of the United Steelworkers Union.
Mexico followed suit, and on April 22, local time, Mexican President Lopez Obrador signed a decree imposing temporary import tariffs of 5% to 50% on 544 goods such as steel, aluminum, textiles, clothing, footwear, wood, plastics and their products. But then, due to a shortage of aluminum, Mexico lifted tariffs of up to 35 percent on aluminum imposed since late April.
On May 14, the US released the results of its four-year review of the 301 tariffs imposed on China, announcing that on the basis of the existing 301 tariffs, the US will further increase tariffs on electric vehicles, lithium batteries, photovoltaic cells, key minerals, semiconductors, steel and aluminum, port cranes, personal protective equipment and other products imported from China. Among them, aluminum tariffs will be raised from 0-7.5 percent to 25 percent, and electric vehicle tariffs will be raised from 25 percent to 100 percent.
According to the export situation of China's aluminum related products in 2023:
Primary aluminum:
In 2023, China's primary aluminum exports are about 150,000 tons, of which the number of primary aluminum exports to the United States is less than 360 tons, so the tariff policy has little impact on primary aluminum exports.
In 2023, China's total aluminum exports of 5.29 million tons, of which the number of aluminum exports to the United States reached about 230,000 tons, accounting for 4.3%; In 2023, China's cumulative exports of aluminum products are about 2.8 million tons, of which aluminum products exported to the United States account for about 15%. Therefore, the US tariff increase policy on China's subsequent aluminum and aluminum products exports will have a certain impact - China's subsequent aluminum and aluminum products exports to the United States will increase the cost of export costs, aluminum and aluminum products exports will decrease, but also expand the overseas aluminum supply gap, short-term does not rule out the strength of aluminum, Shanghai aluminum weakening expectations, In the long run, it may affect the supply and demand pattern of global aluminum-related products.
