Canada to be exempted from Section 232 Tariffs in exchange for stricter imports controls and implicit soft quota; limited downside for MW premiums seen

The US has agreed to fully exempt Canada from Section 232 Tariffs in exchange for prevention of unfair imports, transshipment controls and an implicit soft quota (the US may still impose a duty of 10% if Canadian exports to the US “surge meaningfully beyond historic volumes of trade”). We see limited downward pressure on aluminum premiums.

More details in full report.