U.S. Aluminum Industry Needs Stronger USMCA Enforcement to Support Continued Growth

U.S. Aluminum Industry Needs Stronger USMCA Enforcement to Support Continued Growth

Aluminum Association Outlines Concrete Steps Needed to Curb China's Unfair Aluminum Trade Practices

Today, Aluminum Association President and CEO Charles Johnson testified during the Office of the U.S. Trade Representative's (USTR) hearing on the first joint review of the United States-Mexico-Canada Agreement (USMCA). He urged the administration and USMCA partners to take decisive steps to strengthen the North American aluminum market and stop the growing influx of unfairly subsidized Chinese aluminum entering the region. A renegotiated USMCA is needed to support American jobs, investment and national security.

"A renewed but strengthened USMCA must deliver on its original promise: a level playing field for North American manufacturers and workers," Johnson said in his testimony. "With strong monitoring, harmonized tariffs and fair rules of origin, we can ensure that the benefits of USMCA flow to the U.S., Canada and Mexico - not to subsidized producers in China."

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.

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:

1. Mexico must immediately implement an Aluminum Import Monitoring (AIM) System: 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.
2. Harmonize Aluminum Tariffs Across North America: 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.
3. Strengthen Rules of Origin and Regional Value Content Requirements: 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.
4. Protect the Free Flow of Aluminum Scrap Within North America: 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.
5. Use Section 232 to Address Downstream Products Incorporating Unfairly Traded Metal: 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.

Aluminum Association member companies have invested more than $11 billion in U.S. operations since 2016, thanks in large part to robust and targeted trade enforcement efforts. A coordinated North American regional trade strategy will better insulate the U.S. aluminum industry from heavily state subsidized and further support this growth.

Johnson added, "The USMCA has been good for our industry, but loopholes and lack of enforcement are putting American jobs and production capacity at risk. We need a strengthened agreement that supports North American manufacturing, not one that inadvertently incentivizes subsidized Chinese metal."

To read the prepared testimony, click here. To read the full written comments, click here.