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U.S. Tariffs and Aluminum Trade

March 29, 2018 Uncategorized

The U.S. imposed a 25 percent tariff on steel and a 10 percent tariff on aluminum, effective March 23. While some companies can request exemptions, these tariffs have the potential to affect businesses and larger state economies that rely heavily on these commodities and products. Higher prices for aluminum imports may impact industries such as auto manufacturing, brewing, and construction. More broadly, U.S. states could be placed at a disadvantage through retaliatory tariffs on American export industries.

Aluminum ranks among the top 5 U.S. imports from Saudi Arabia, and so these tariffs have the potential to disrupt the U.S.-Saudi trade relationship.

The following outlines some statistics related to U.S. aluminum imports.

Aluminum Imports to the U.S.

In 2017, the following states relied most heavily on aluminum imports (HS 2-dig Aluminum and Articles Thereof). The top 5 states for overall aluminum imports are California, New York, Louisiana, Maryland, and Texas.

In 2016, the U.S.’s top import categories from Saudi Arabia (2-digit Harmonized System) were:

• Mineral fuels ($16 billion)
• Special other – returns ($303 million)
• Organic chemicals ($240 million)
• Fertilizers ($167 million)
• Aluminum ($101 million)

In 2017, the U.S.’s top import categories from Saudi Arabia (2-digit Harmonized System) were:

• Mineral fuels ($18 billion)
• Organic chemicals ($302 million)
• Special other – returns ($232 million)
• Aluminum ($164 million)
• Fertilizers ($148 million)

The top 5 states that import aluminum from KSA are Louisiana, Maryland, Indiana, Georgia, and Pennsylvania.

Similarly, certain U.S. states rely heavily on foreign steel imports.

U.S. reliance on steel imports

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