US customs duties on imports of aluminum will in principle benefit companies such as Alcoa. Now, the aluminum giant is asking for an exemption for the company's imports of aluminum from Canada.
Alcoa wants to get rid of Trump's duty, which is 10 percent for imports of aluminum from Canada, which the company claims will cost over $ 800 million for the company, writes the New York Times and Wall Street Journal.
The tariffs introduced earlier this year would help the US steel and aluminum industry, but the application from the Norwegian Hydro competitor Alcoa shows that the rules can also have unintended consequences for many companies writes the New York Times.
Alcoa downgraded its expected gross profit (EBITDA) for 2018 to between $ 3 billion and $ 3.2 billion.
It is $ 500 million lower than the previous estimate of between $ 3.5-3.7 billion.
"The new estimate for the year as a whole refers to today's market prices, aluminum import duty, increased energy costs and certain operating conditions, Alcoa wrote when the company published quarterly data on 19 July.
The company wrote that it lost 15 million dollars in the second quarter as a result of the United States importing aluminum from Canada as of June 1.
When the figures were presented, Alcoa's CFO announced that the company's costs would increase by about $ 100 million a year due to the Canadian import duty, according to the New York Times.
This contributed to a drop of over 13 percent in stock. So far this year, the Alcoa share has dropped 20.7 percent to 42.72 dollars.
Alcoa imports aluminum to the United States from the company's three smelters in Canada, and according to US newspapers, Alcoa's management says that there are not enough US alloys needed for the production of aluminum cans.
