According to reports, Kazakhstan has formally signed a tripartite cooperation memorandum with the US-based Open Element company and South Korea's Hands company, finalising the construction project of the country's first modern aluminum wheel manufacturing plant. This marks a critical step in the transformation of Kazakhstan's automotive parts industry toward high-end and localised production, and also serves as a significant milestone in deepening its international industrial cooperation and strengthening its industrial capabilities. The project is led by Kazakhstan's leading domestic automaker, Astana Motor Company, in collaboration with Open Element from the US and Hands from South Korea.

[SMM Weekly Survey on Aluminum Downstream: Operating Rate of Aluminum Processing Industry Remains Flat WoW at 61.4%, Mid-Year Consumption Promotions Expected to Support Operating Rates] This week, the operating rate of leading enterprises in China's aluminum processing downstream sector remained flat WoW at 61.4%, with continued divergence across different segments.

[SMM Analysis: Comparison of Aluminum Wheel Export Situation from March to April: Calm on the Surface, but Hidden Complexities?] Customs data shows that in April 2025, China exported a total of 81,400 mt of aluminum alloy wheel hubs, basically flat MoM compared to 82,000 mt in March, highlighting overall resilience, and with a significant YoY increase of 13%. The export performance of domestic aluminum wheels in April remained robust, with the better-than-expected performance attracting market attention. Since the US initiated a tariff war in early April, the aluminum wheel industry, which has accounted for over 30% of direct exports to the US in recent years, was expected to be "the first to bear the brunt," and the market's export expectations for the aluminum wheel industry were relatively pessimistic. However, the aluminum wheel export data for April appeared "calm," or even "serene," exceeding the expectations of most in the market...

[SMM Analysis: Comparison of Aluminum Wheel Export Situation from March to April: Calm on the Surface, but Hidden Complexities?]

[SMM Weekly Survey on Aluminum Downstream: Weekly Operating Rate of Aluminum Processing Continues to Decline by 0.2% to 61.4%, with Sector Differentiation and Notable Recovery in Export Trade] This week, the operating rate of leading enterprises in China's aluminum processing downstream sector declined slightly by 0.2 percentage points WoW to 61.4%, with the differentiation trend continuing across various sectors.

From May 10 to 11, US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer held a new round of tariff negotiations with Chinese Vice Premier He Lifeng in Geneva. Both sides agreed to uniformly reduce the EO 14257 "reciprocal tariff" to a 10% baseline within 90 days and suspend further increases. Additionally, the implementation of the remaining 24% tariff was suspended for 90 days. The Section 232 tariffs , which are designed to protect the US domestic steel and aluminum industries, as well as the Section 301 tariffs targeting China, were not addressed in this round of negotiations. Therefore, the 25% tariff imposed by the US on steel and aluminum products remains unchanged , but this round of negotiations has left room for further negotiations on possible "substantial tax reductions". It is worth noting that the US has also retained a 20% "fentanyl tariff" specifically targeting Chinese goods valued at less than US$800 entering the US through international mail or express delivery channels , in an effort to combat the smuggling of chemical precursors. Industrial-grade aluminum semis are typically cleared through regular sea or air freight customs declarations, so this tax surcharge has no substantial impact on the tax burden of aluminum industry exports . So, how many layers of tariffs are currently imposed on aluminum semis directly exported from China to the US? What are the final tariff rates for each product? Currently, there are five main layers of tariffs: MFN (Most Favored Nation) tariff rates – the "first threshold" universally applicable to all WTO members; Section 301 additional tariffs on China – only targeting aluminum semis of Chinese origin, with tariff rates of 25% or 7.5% depending on the list; Section 232 steel and aluminum tariffs – starting from March 12, 2025, the US will impose a 25% tariff on all imported aluminum and aluminum semis; EO 14257 reciprocal tariff – currently exempted , temporarily set at 0%; AD/CVD trade remedy measures – imposing anti-dumping (AD) and countervailing duty (CVD) deposits on specific categories such as extruded profiles, aluminum sheets, and aluminum foil. Tariff Tier Current Tariff Rate Scope of Application (Typical HTS) Cumulative with Other Tiers? Tier 1 MFN (Column 1-General) Aluminum and aluminum semis (7601-7609) 0–5% Aluminum wheel hubs 2.5% 7,601-7,609, 7,610-7,616, 8,708.7 Must Tier 2 Section 301 tax surcharge on China List 1-3: 25% (effective from May 10, 2019) List 4A: 7.5% (effective from February 14, 2020) List 1-3: Most of 7,601-7,609; List 4A: Some products of 7,610-7,616; Aluminum wheel hubs 8708.70.45 fall under List 3 Yes (only of Chinese origin) Tier 3 Section 232—General 25% tax surcharge on steel and aluminum 25% (effective from March 12, 2025) 7,601-7,609 + 7,616.99.51/70, etc. Yes Section 232—Auto parts (including aluminum wheel hubs) 25% (effective from May 3, 2025) Annex I lists 8,708.70, etc. Yes Tier 4 EO 14257 reciprocal tariff Exemptions for aluminum and auto parts = 0% — — Tier 5 AD/CVD trade remedies (anti-dumping and countervailing duties) See the table below Extruded materials, general alloy plates, foil, disposable meal boxes, etc. Yes Summary of currently effective anti-dumping/countervailing products: Product AD Bond CVD Bond Federal Register Notice Profiles 7,604, 7,608 33–86% 7–374% A-570-967 / C-570-968 General alloy aluminum plates 7,606 49.50% 51% A-570-073 / C-570-074 Household aluminum foil ≤0.2 mm 7,607 56–106% 17–81% A-570-053 / C-570-054 Disposable aluminum meal boxes 7,615.1, 7,615.9 94–168% — A-570-157 (final determination in 2025) Quick reference for typical products: Product Category (HTS Examples) MFN Section 232 Section 301 EO 14257 AD/CVD* Total Nominal Tariff Unwrought Aluminum Ingot (7601) 0% 25% (Aluminum) 25% 0% None 50% Aluminum Extrusion (7604/7608) 5% 25% (Aluminum) 25% 0% AD 33–86% CVD 7–242% ≥ 88% (Median) Common Alloy Aluminum Sheet and Coil (7606) 3% 25% (Aluminum) 25% 0% AD 49.5% CVD 46.48% ~ 149% Aluminum Foil ≤0.2 mm (7607) 0–5.8% 25% (Aluminum) 25% 0% AD 48–106% CVD 17–81% ≥ 117% Aluminum Heat Sinks/Structural Parts (7610, 7615, 7616) 2.5–5% 25% (Derivatives) 7.5% (List 4A) 0% New AD 94–168% (Disposable Meal Boxes, etc., A-570-157, Final Determination on March 11, 2025) ≥ 137% Aluminum Alloy Automobile Wheel Hubs (8708.70.45/.60) 2.50% 25% (Auto Parts) 25% 0% Under Investigation, None for Now 52.50% *AD/CVD items are subject to the latest announcements from the US Department of Commerce and the International Trade Commission. In 2024, China's direct exports of aluminum semis to the US accounted for only 4.08% of total exports. Therefore, the tariff war had a relatively small impact on the direct exports of aluminum semis. However, for some terminal finished products, such as home appliances, electronics, and auto parts, if they are not included in the Section 301 or Section 232 lists, they will be subject to the 10% tariff under the current Sino-US negotiation agreement. Additionally, the 24% 90-day suspension window may stimulate a rush in exports, thereby boosting aluminum demand in the short term. SMM will closely monitor recent downstream production and order situations.