Magnitude 7 Metals CEO praises reinstatement of import tax

MARSTON, Mo. — On Thursday, President Donald Trump said that the United States is reinstating a 10% import tax on Canadian aluminum, receiving praise from a local aluminum smelter.

“Ever since Canada got its tariff exemption, Canadian primary aluminum imports have been skyrocketing. The Canadian surge was hurting working families in Missouri,” said Charles Reali, CEO of Magnitude 7 Metals in a release. “Today’s historic action by President Trump will stop the Canadian surge and keep over 500 good-paying American aluminum jobs right here in Missouri’s Bootheel.”

Trump originally imposed the tariffs on aluminum imports in 2018. He then lifted them last year on Canadian and Mexican metals to smooth the way for the US-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement. The USMCA took effect July 1 and was expected to bring stability to North American trade.

Instead, Trump declared Thursday that he is reimposing the tariffs on Canada. Speaking at a Whirlpool plant in Ohio, the president said that Canada had promised that “its aluminum industry would not flood our country with exports and kill all of our aluminum jobs, which is exactly what they did.’’

The Office of the U.S. Trade Representative said the tariffs will take effect Aug. 16.

Reali said reinstating the Section 232 tariffs levels the playing field and will allow Magnitude 7 Metals to remain competitive against foreign producers.

“Before Canada began violating their commitments, the Section 232 program was working effectively, with restarts at smelters like ours increasing U.S. production by over 60%. Today’s action by President Trump will ensure that U.S. production and U.S. aluminum jobs stay in the United States.”

Aluminum imports from Canada rose sharply from February to March but have since leveled off and actually dropped 2.6% from May to June, according to the Aluminum Association trade group.

“Claims of a ‘surge’ of primary aluminum imports from Canada are simply not accurate,’’ said Tom Dobbins, the association’s president. He added: “Especially now, the U.S. should be focused on getting the manufacturing economy going again in the region – not picking battles with USMCA trading partners.’’

Canadian Deputy Prime Minister Chrystia Freeland called the tariffs “unwarranted and unacceptable” and said Canada intends to swiftly impose dollar-for-dollar countermeasures.

“In the time of a global pandemic and an economic crisis, the last thing Canadian and American workers need is new tariffs that will raise costs for manufacturers and consumers, impede the free flow of trade, and hurt provincial and state economies,” Freeland said in a statement.

— The Associated Press contributed to this report.