Century Aluminum Applauds President Trump’s Decisive Action to Strengthen Section 232 Tariffs

Rhea-AI Summary

Century Aluminum (NASDAQ:CENX), the largest domestic producer of primary aluminum in the United States, has expressed strong support for President Trump's executive order strengthening Section 232 tariffs. The order implements a 25% tariff on all primary aluminum imports into the U.S. from all foreign countries.

The new measure closes a significant loophole in the existing tariff system that previously allowed nearly 75% of imports to avoid the tariff. According to Century Aluminum CEO Jesse Gary, this action will help protect national security and level the playing field for America's aluminum workers, potentially driving a resurgence in domestic aluminum production.

Positive

• Implementation of 25% tariff on all primary aluminum imports
• Closure of loophole that previously allowed 75% of imports to avoid tariffs
• Potential increase in domestic aluminum production competitiveness

Negative

• None.

Insights

Trade Policy Analyst

The implementation of a comprehensive 25% tariff on all primary aluminum imports marks a watershed moment for the U.S. aluminum industry, particularly benefiting Century Aluminum as the nation's largest domestic producer. The closure of existing loopholes that previously allowed 75% of imports to circumvent tariffs represents a fundamental restructuring of the competitive landscape.

The economic implications are substantial. With the existing tariff structure being significantly strengthened, CENX stands to benefit from: 1) Enhanced pricing power in the domestic market, as imported aluminum becomes comparatively more expensive 2) Increased capacity utilization at existing facilities 3) Potential market share gains from import substitution.

However, several critical factors warrant careful consideration:

• Potential retaliatory measures from major trading partners could impact other sectors of the U.S. economy
• Historical precedent suggests that similar tariff actions have faced legal challenges through the WTO
• The sustainability of these measures may be questioned, particularly given potential changes in administration or policy priorities
• Downstream industries that rely on aluminum inputs may face increased costs, potentially leading to pushback

The aluminum industry's strategic importance to national security, particularly in aerospace and defense applications, provides some cushion against potential policy reversals. For Century Aluminum, this development could catalyze increased investment in domestic production capacity and operational efficiency improvements.

CHICAGO, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Century Aluminum Company (NASDAQ:CENX) strongly supports President Donald Trump’s decisive action today to strengthen Section 232 tariffs and fight back against unfair trade practices that have for years disadvantaged the U.S. primary aluminum industry.

Today’s executive order implements a 25% tariff on all primary aluminum imports into the U.S. from all foreign countries and closes a loophole in the existing tariff that allowed nearly 75% of imports to avoid the tariff. Closing these loopholes will protect good American jobs and our national security.

Century Aluminum CEO Jesse Gary applauded the President’s decisive action:

“We strongly support today’s Executive Order from President Donald J. Trump imposing a 25% tariff to stop the flood of aluminum imports into the United States. President Trump’s decisive action will protect national security and help level the playing field for America’s aluminum workers.

“On behalf of our employees, I thank President Trump for putting America first and strengthening the Section 232 tariffs, which will help drive the resurgence of domestic aluminum production.”

Century Aluminum is the largest domestic producer of primary aluminum in the United States.

About Century Aluminum

Century Aluminum is an integrated producer of bauxite, alumina, and primary aluminum products. Century is the largest producer of primary aluminum in the United States, and also operates production facilities in Iceland, the Netherlands and Jamaica. Visit www.centuryaluminum.com for more information.

Cautionary Statement

This press release and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to the "safe harbor" created by section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words "believe," "expect," "hope," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "scheduled," "forecast" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may."

Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings made with the Securities and Exchange Commission. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond our ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

INVESTOR CONTACT
Ryan Crawford
investorrelations@centuryaluminum.com
(312) 696-3132

MEDIA CONTACT
Tawn Earnest
614-698-6351

FAQ

What is the new tariff rate on aluminum imports announced in Century Aluminum (CENX) press release?

The new tariff rate is 25% on all primary aluminum imports into the United States from all foreign countries.

What percentage of aluminum imports previously avoided tariffs before the new CENX-supported measure?

Nearly 75% of aluminum imports were previously able to avoid the tariff due to existing loopholes.

How will the new aluminum tariffs affect Century Aluminum's (CENX) market position?

As the largest domestic producer of primary aluminum in the United States, CENX is expected to benefit from increased protection against foreign imports and improved competitive positioning.

What specific loophole did the new Section 232 tariff close for Century Aluminum (CENX)?

The executive order closed a loophole in the existing tariff system that had allowed approximately 75% of aluminum imports to avoid the tariff, though specific details of the loophole were not provided.