US to impose 200% tariff on Russian aluminium from next month

The world's largest economy takes further steps to squeeze Russia's revenue

US President Joe Biden. The US announced new action against Russia's metals and mining sector. Bloomberg

The US will impose a 200 per cent tariff on aluminium and derivatives produced in Russia from March 10, the White House said on Friday, as the world’s largest economy continues to take measures to squeeze Russia’s revenue amid the continuing conflict with Ukraine.

The US will also apply a 200 per cent tariff on aluminium imports of "primary aluminium" produced in Russia from April 10.

“In adopting the tariff adjustment ….I recognise that concerns about aluminium imports from Russia and their impact on our national security are shared by other countries and that we need to work together with our partners to ensure that the global market distortions caused by Russian aluminium articles do not distort our markets and threaten our national security,” the White House statement said, quoting President Joe Biden.

The latest move comes as the US on Friday unveiled a sweeping new sanctions package against Russia's economy aimed at hampering its ability to wage war against Ukraine, exactly one year since Moscow's invasion.

Under the new sanctions, about 200 people and companies across Russia, Europe, Asia and the Middle East will be punished for supporting Russia's war effort.

The US Treasury Department said that includes companies building or importing high-tech equipment used by Russian military entities.

"President Biden has made it a priority to mitigate the effects of Russia’s invasion on domestic industries critical to our national security, and this includes the American aluminium industry," US Secretary of Commerce Gina Raimondo said in a separate statement.

"In imposing these tariffs, we are denying Russia an important market for its aluminium while taking a stand for America’s workers."

US imports of unwrought aluminium and alloys from Russia amounted to 191,809 tonnes, or roughly 4.4 per cent of the more than 4.4 million tonne total last year, compared with 8.9 per cent in 2018 and 14.6 per cent in 2017, Reuters reported, citing Trade Data Monitor.

Despite the new tariffs announced by the US, prices of aluminium, vital for transport, packaging and construction industries, were down 2.5 per cent at $2,335.5 a tonne at the end of trading on Friday amid higher supplies.

Earlier this month, EU member states, the Group of Seven industrialised countries and Australia also reached an agreement on price caps for Russian petroleum products.