Bloomberg reports that US officials are preparing a 200 percent tariff on Russian aluminum. Washington is expected to announce this decision within the week, tying the move to the anniversary of Russia’s military action in Ukraine.
Sources close to the agency indicate that President Joe Biden has not yet signed off on the measure, as the administration weighs potential collateral damage to key US industries, including aerospace and automotive sectors.
Officials describe the steps as part of a broader effort by the United States and the European Union to reduce Russia’s prominence as a global supplier of commodities.
The European Union has imposed a ban on imports of Russian oil and natural gas to cut dependence on Moscow. Yet the impact has been tempered by a realignment of the global oil trade, with a substantial share of crude now flowing to China and India at comparatively lower prices.
There is no current indication that the EU plans to extend similar tax measures to aluminum.
export to USA
Russia remains one of the world’s leading aluminum producers, ranking behind only China, and it continues to be a major supplier to the US market. The breadth of buyers spans construction, manufacturing, and automotive industries. Russian aluminum accounts for roughly 10 percent of total US imports. Bloomberg notes that the imposition of duties could effectively halt these imports.
Imports of Russian aluminum into the United States nearly ceased in October of the previous year, with a resurgence in November of about 11.6 thousand tons and a similar level in December, just under 11 thousand tons.
January figures showed imports around 9.7 thousand tons from Russia to the United States.
Aluminum prices declined by nearly 15 percent last year amid concerns about a global slowdown and tightening conditions stemming from the outbreak in China.
Following news of potential customs duties on February 6, RUSAL shares dropped close to 2 percent, slipping below the 42 ruble mark per share.
western restrictions
Since December 2022, the G7 group (the United States, United Kingdom, Canada, Japan, Germany, France, Italy), the European Union, and Australia have set a price ceiling of $60 per barrel for Russian oil. Concurrently, an offshore oil embargo targeting Russian crude has been enforced by the EU. Beginning February 5, a similar embargo extended to Russian petroleum products, with two price levels established: $45 per barrel for heating oil and naphtha, and $100 per barrel for diesel and kerosene.
In January, US media noted concerns about lowering the marginal cost of Russian oil to avoid raw material shortages. Lithuania, Latvia, Estonia, and Poland advocated a more aggressive cut to the ceiling, suggesting a $30 per barrel cap that could be reviewed every two months.
Just before price limits took effect, Japan joined the set. The ceiling for sea-borne Russian oil products is now fixed at $100 for some products and $45 for others, depending on category.