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In an effort to combat forced labor, Customs and Border Protection declared aluminum as the fourth product added to the Uyghur Forced Labor Prevention Act (UFPLA) which includes tomatoes, polysilicon and cotton. Though the US imports very little aluminum from China, the act is likely to mostly impact auto parts coming from the Xinjang Uyghur Autonomous Region, an area in China where a mostly Muslim population has been alleged to perform forced labor. 


This move, coupled with rumors that the US is debating a 200% tariff on Russian aluminum, has caused importers some concerns with regard to pricing and forecasting for manufacturing. The response to the Russian aggression in Ukraine is the next in a number of economic deterrents that the West has imposed on the Russian supply chain. Rumors that Russia has been dumping cheap aluminum into the US market has urged lawmakers to consider responding with the tariffs as soon as this week. 


International upheaval is a critical and often an individual factor in trade changes as governments find it far easier to fight back economically instead of militarily. During a precarious time in the world, individual economies are quickly thrown into disarray by economic sanctions and this is definitely a strong possibility. With looming threats of a recession and economic outliers confusing even the most educated analysts, a spike in the price of aluminum, especially from Russia (which supplies 10% of US aluminum imports), the blowback could be significantly difficult to sidestep. 


It’s difficult to predict the way these tariffs will affect the economy but if your supply chain includes auto parts, aluminum or imports from an area that is under sanctions, you’ll need a strong logistics partner in your corner. At Edward J. Zarach & Associates, you have a team of experts working with you to help clarify the rules and prepare you for upcoming changes. If you want to see how smoothly your cargo travels under the safety of the Zarach banner, contact your representative today.