Platts reflects prevailing tariffs on Canadian aluminum in its P1020A US Import Duty calculation

Platts, part of S&P Global Commodity Insights, reflects prevailing US tariffs on Canadian aluminum in its Aluminum P1020A US Import Duty calculation and related US Midwest implied duty unpaid indicators, effective March 12.

Reflecting material with an FOB Canada origin and prevailing Canadian aluminum tariffs, the P1020A US Import Duty is calculated in cents/lb (MMOEU00) as follows:

-- Deduct the P1020A US Duty Freight Factor (cents/lb: AFLSB00) from the US Midwest Transaction Price (MMAAF10) to derive an implied FOB Canada value

-- Divide the FOB value by the tariff factor, creating an implied duty-unpaid FOB value

-- Multiply this implied duty-unpaid value by the tariff multiplier to generate the P1020A US Import Duty

President Donald Trump announced 25% tariffs under US Section 232 for aluminum imports into the US from all origins, from March 12.

As a result, the P1020A US Import Duty calculation reflects a 25% tariff, meaning the tariff factor and tariff multiplier used in the calculation from March 12 are 1.25 and 0.25, respectively.

The values used in the calculation are subject to change, should the percentage tariff rate applied to Canadian aluminum imports into the US be changed, or should new Canada tariffs be introduced.

Platts will publish clarifications regarding the tariff factor and tariff multiplier used in the P1020A US Import Duty calculation as any changes to tariff rates are announced and implemented.

The P1020A US Import Duty is used to calculate implied duty unpaid indicators including: Aluminum P1020 MW US Transaction Premium (Implied Duty-Unpaid) delivered US Midwest (MMOFU00) and Aluminum P1020 Transaction Price (Implied Duty-Unpaid) delivered US Midwest (MMOGU00).

The assessments impacted by the change to the P1020A US Import Duty calculation are:

The import duty calculation and related duty-unpaid indicators launched in 2018 to complement Platts benchmark Midwest US Transaction Premium and the US Midwest Transaction Price (all-in) assessments for P1020 aluminum, which are assessed on a delivered, duty-paid basis.

Platts DDP assessments reflect the delivered Midwest price of P1020 from all origins, and will not be impacted by this change.

Full details of Platts US aluminum assessments are available in the global nonferrous specifications guide here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/nonferrous-methodology(opens in a new tab).

The decision to reflect prevailing tariffs considered feedback received in response to a consultation opened on Feb. 3 and a proposal published on Feb. 18. Platts communicated details of the methodology change on March 6.

The consultation subscriber note can be accessed here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/020325-platts-opens-consultation-on-p1020aus-aluminum-import-duty-calculation (opens in a new tab).

The proposal note is available here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/021825-platts-proposes-to-reflect-25-tariffs-in-aluminum-p1020a-us-import-duty-calculation (opens in a new tab).

The note communicating the details of the change is available here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/030625-platts-to-reflect-prevailing-tariffs-on-canadian-aluminum-in-its-p1020a-us-import-duty-calculation.(opens in a new tab)

Platts P1020A US Import Duty calculation and related US Midwest Implied Duty Unpaid Indicators are published in Metals Daily and Metals Week, on PMA413 and MTL413 fixed pages, and in the Platts pricing database.

Please send feedback, comments and questions to metalsamericas@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.