On May 10-11, 2025, US Treasury Secretary Scott Bessent and State Department Trade Representative Jamieson Greer held a new round of tariff negotiations with Chinese Vice Premier He Lifeng in Geneva. Both sides agreed to reduce EO 14257 "reciprocal tariffs" to a baseline of 10% within 90 days and suspend further increases. Additionally, the 24% tariff was suspended for 90 days.
Since the reciprocal tariffs did not cover aluminum and aluminum semis already covered by Section 232, the above agreement did not change the current tariffs on aluminum semis exported to the US.
The Section 301 tariffs imposed during Trump's first term targeting China, the Section 232 tariffs in 2025 to protect the US steel and aluminum industry, and the 20% "fentanyl tariff" (Executive Order 14195 and 14228) imposed on all goods of Chinese (including Hong Kong) origin under the pretext of "combating the synthetic drug supply chain" were not addressed in this negotiation.
So, how many layers of tariffs are currently imposed on aluminum semis directly exported from China to the US? What are the final tariff rates for each product?
- MFN Most Favored Nation tariff—the "first threshold" universally applicable to all WTO members;
- Section 301 tax surcharge on China—only applicable to aluminum semis of Chinese origin, with rates of 25% or 7.5% depending on the list;
- Section 232 steel and aluminum tariffs—a 25% tariff imposed by the US on all imported aluminum and aluminum semis starting from March 12, 2025;
- "Fentanyl" tariff—a 20% tariff on all goods of Chinese origin;
- AD/CVD trade remedy measures—anti-dumping (AD) and countervailing (CVD) deposits imposed on specific categories such as extrusions, aluminum sheets, and aluminum foil.
Current effective anti-dumping product summary:
*AD/CVD items are subject to the latest announcements by the US Department of Commerce and the International Trade Commission.
Typical product quick reference:
In 2024, aluminum semis directly exported from China to the US accounted for only 4.08% of total exports, so the tariff war had a relatively small impact on direct aluminum semis exports. However, some end-user finished products not under the 76 code, such as home appliances, electronics, and auto parts, if not listed under Section 301 or Section 232, will be subject to the 10% tariff agreed upon in the US-China negotiations and the 20% fentanyl tariff, and the 24% suspension for 90 days may stimulate a rush to export, thereby boosting aluminum demand in the short term. SMM will focus on the recent downstream production and order situation.
