United States Imposes New Tariffs On Russian Metals Imports

On the one year anniversary of Russia’s invasion of the Ukraine, the Biden administration announced it had raised tariffs on more than 100 Russian chemical products, minerals, and metals, including aluminum, that together are worth $2.8 billion.

Regarding aluminum products, the proclamation from the White House stated that:

• Beginning on March 10, 2023, a 200 percent ad valorem tariff on aluminum articles that are the product of Russia and derivative aluminum articles that are the product of Russia will be put into place; and
• Beginning on April 10, 2023, a 200 percent ad valorem tariff on aluminum articles where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or the aluminum articles are cast in Russia, and derivative aluminum articles where any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia, will be put into place.

The White House defines “primary aluminum” as new aluminum metal produced from alumina (or aluminum oxide) by the electrolytic Hall-Heroult process. Biden administration officials said the measures are designed to target key Russian commodities generating revenue for Russia while reducing U.S. reliance on Russia.

As part of its new measures against Russia, the White House also directed the U.S. Department of Commerce to list nearly 90 companies from Russia, China, and other countries on the Entity List for engaging in sanction evasion and backfill activities in support of Russia’s defense sector. These listings will prohibit the targeted companies from purchasing items like semiconductors that are made in the United States or abroad using certain U.S. technology or software.

With G7 partners, the Commerce Department also will take action to align measures on industrial machinery, luxury goods, and other items, and to issue new restrictions to prevent components found in Iranian drones from making their way onto the Ukrainian battlefield. Read more about these measures here. Find an analysis of the tariffs’ potential impact from ING here.