Fortress North America
The United States-Mexico-Canada Agreement (USMCA) negotiated during President Trump's first term helped to stabilize the U.S. aluminum market and support an environment ripe for continued investment. Since 2016, the industry has invested more than $11 billion to build new and expand existing U.S. operations, including the first two new rolling mills since 1980.
However, unfairly subsidized Chinese aluminum continues to flow into the region. Chinese subsidized aluminum coil (HTS Code 7606) entering the USMCA region has increased dramatically in recent years. For example, coil imports into Mexico are up nearly 500% 2025 year-to-date compared to 2017. Subsidized coil imports into the region so far this year are equivalent to the capacity of a major U.S. rolling mill.
A renewed but strengthened USMCA should deliver on its promise to support North American manufacturing, not inadvertently incentivize subsidized Chinese metal.
What Can We Do
The Aluminum Association is calling for five concrete steps as part of a renegotiated USMCA in order for Mexico and Canada to continue enjoying preferential tariff treatment:
After committing to establish an AIM system in 2019, Mexico still has not done so. The United States and Canada have already stood up systems to track country of smelt and country of most recent cast and Mexico’s commitment must be fulfilled before any new aluminum trade discussions proceed.
Tariff harmonization creates a unified North American aluminum border. All three countries should adopt aligned tariffs that match the scope and strength of U.S. Section 232 aluminum measures and close duty drawback loopholes that negate impacts of U.S. tariffs.
Products containing any Chinese or other non-market economy aluminum should not qualify for preferential USMCA treatment. Updates should apply to all stages of aluminum — upstream, midstream, and downstream — and include clear regional value content requirements to prevent trade circumvention.
Scrap is a vital feedstock and critical material for new U.S. aluminum investments. North American scrap should move freely within the region while preventing scrap exports to China and other non-market economies.
The administration should apply Section 232 tariffs to imported products from Mexico or Canada that incorporate unfairly traded aluminum. This will stop circumvention of U.S. antidumping and countervailing duty (AD/CVD) orders; protect American manufacturers from unfair competition that undercuts the market and keep North American trade fair, transparent and rules based.
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