Alcoa Corp, the largest U.S. aluminum manufacturer, requested a one-year exemption Monday from President Trump’s tariffs on the metal.
In an application to the U.S. Department of Commerce, the company said it cannot find an American supplier to provide aluminum-alloyed slabs that meet Alcoa’s specifications.
“Alcoa is aware of these manufacturers’ shortage of material as Alcoa is the one selling and supplying material to these manufacturers,” the company wrote. “If these manufacturers had available capacity to produce slabs for Alcoa, they would not be buying the material from Alcoa.”
The company is among thousands of U.S. businesses that have sought exemptions from Trump’s 10 percent tariffs on aluminum imports and 25 percent tariffs on steel, measures that were intended to prop up the metals industry. Companies whose requests weren’t approved are now forced to pay more for raw materials, curbing their profits.
Welded Tube, for example, recently said prices for steel surged after manufacturers persuaded the government to deny exemptions.
Such issues, however, have not dissuaded the Trump administration from moving ahead with tariffs. The White House is weighing a 25 percent levy on $200 billion worth of Chinese goods, up from 10 percent previously. China, along with trading allies like the European Union, Canada and Mexico has imposed retaliatory measures.
Alcoa previously cut its profit targets for the year due to the higher costs incurred as a result of the administration’s trade policies. Other companies like Caterpillar are raising prices to curb the impact of the new tariffs.
[Also read: US business showing resilience as Trump escalates trade dispute with China]
