President Trump Announces Program To Reduce Aluminum Tariffs

President Donald Trump has issued a proclamation adjusting the Section 232 primary aluminum tariffs for companies that make new capital investments. Specifically, the president authorized and directed the U.S. Secretary of Commerce to establish an incentive program for companies that invest in building, expanding, or refurbishing aluminum smelters in the United States. The program is intended to incentivize:

• The construction of new facilities for producing primary aluminum;
• The expansion of facilities so that they can produce primary aluminum; and
• The refurbishment of facilities to expand or increase the efficiency of production.

Companies must submit onshoring plans that, if approved, will make them eligible to import a commensurate level of primary aluminum into the United States at a reduced tariff rate equal to half of the otherwise applicable Section 232 rate.

The Secretary of Commerce will monitor and enforce all approved onshoring plans. If a company fails to meet its agreed-upon commitments, the secretary is authorized to stop and rescind the tariff benefits, including retroactively.

Eligible projects must begin construction by Jan. 20, 2029. An eligible company or its representatives can import some primary aluminum at half the Section 232 tariff, so long as that quantity corresponds to the “reasonably anticipated annual production” of its planned project. Expansion plans must include commercially reasonable milestones, timelines, and projected costs as well as anticipated production projections. For refurbishments, the tariff adjustment will be pegged to the value of the company’s investment.