ExecutiveOrdersEO
Proc 10106ProclamationTrump 45 · R

Proclamation 10106

Adjusting Imports of Aluminum Into the United States

This proclamation reinstates Canada's exclusion from the 10 percent tariff on non-alloyed unwrought aluminum imports that had been re-imposed in August 2020, based on expected reduced export volumes from Canada. It establishes monthly quota-like monitoring thresholds for September-December 2020 and warns of potential retroactive tariff re-imposition if imports exceed 105 percent of those levels.

Federal Register Open PDF 85 FR 68709

Impact dates

  1. Monthly volume monitoring thresholds apply through December 2020

  2. U.S.-Canada consultations expected

  3. Effective date for tariff exclusion and HTSUS modifications

  4. Foreign trade zone status changes effective

Key directives

  • Amend Proclamation 9704 to exclude Canada from tariff effective September 1, 2020
  • Modify HTSUS subchapter III of chapter 99 to remove additional duty on Canadian non-alloyed unwrought aluminum
  • Secretary of Commerce, in consultation with USTR, to continue monitoring aluminum imports
  • Establish monthly volume thresholds: 83M kg (Sept), 70M kg (Oct), 83M kg (Nov), 70M kg (Dec)
  • Consider re-imposing tariff if imports exceed 105% of monthly thresholds
  • Retroactive tariff application possible to September 1, 2020 entries
  • No drawback available if tariff re-imposed retroactively
  • Foreign trade zone status restrictions for Canadian aluminum

Who is ordered

Timeline

Immediate

  • Tariff exclusion on Canadian non-alloyed unwrought aluminum reinstated effective September 1, 2020
  • HTSUS modifications take effect for goods entered on or after September 1, 2020

Near term (90d)

  • Monthly monitoring of Canadian aluminum imports against volume thresholds (September-December 2020)
  • U.S.-Canada consultations expected in December 2020

Long term

  • Potential reconsideration of tariff based on December 2020 consultations and 2021 market conditions

Risks & tensions

  • Retroactive tariff threat creates uncertainty for importers planning entries
  • 105% threshold mechanism is rigid; minor exceedances trigger presidential consideration of re-imposition
  • December 2021 consultations language is vague on binding outcomes
  • Foreign trade zone 'privileged foreign status' rule may disadvantage pre-existing inventory
  • Bilateral negotiation pattern (impose, negotiate, remove, re-impose, remove) suggests ongoing instability in U.S.-Canada aluminum trade
Proclamation 10106: Adjusting Imports of Aluminum Into the United States · Executive Orders