Senators Call for Extruders Relief

Senator Tom Cotton and his colleagues have written to Secretary Raimondo, urging the Department of Commerce to revise its Section 232 exclusion process for extruded aluminum imports. The letter claims that the existing rules place an unfair burden on American aluminum extruders, despite having effectively protected primary aluminum producers.

In 2018, in response to a perceived threat to national security and internal economy posed by rising aluminum imports, the Department of Commerce imposed a 10 percent tariff on these imports. This led to a 31 percent fall in aluminum imports and a near-billion dollar rise in domestic production from 2018 to 2021.

However, the Senators believe these tariffs haven't adequately protected aluminum extruders, as the department's General Approved Exclusions rules permit tariff-free import of extruded aluminum products if they can't immediately be produced domestically in sufficient quantities or quality.

If an American aluminum extruder objects to such an exclusion, they are required to demonstrate their ability to produce the extruded product within eight weeks or faster than a foreign competitor. The Senators argue that these rules are unjust, as they don't account for the time-intensive nature of acquiring the necessary tooling for custom manufacturing jobs.

The letter indicates that since 2019, extruded aluminum imports have risen by 82 percent and domestic producers have missed out on millions of tons of potential sales. Moreover, they highlight concerns about Mexico, whose extruded aluminum imports, suspected of facilitating Chinese transshipment, have grown by a staggering 150 percent.

The American extruder industry, employing over 60,000 workers and capable of producing over five million custom shapes, has reportedly been forced to cut shifts, capital investment, and production. The Aluminum Extruders Council estimates that almost 9,000 jobs have been lost since the third quarter of 2022, and warns that plants could close if these trends continue, posing a threat to the American workforce and defense industrial base.

The Senators conclude by requesting that the Department of Commerce reform its tariff exclusion process for extruded aluminum products, expressing confidence that the department can find reasonable accommodations for this crucial industry.