Trump Administration Offers Metals Tariff Relief To Canadian, Mexican Firms That Move Production To United States

The U.S. government published a Federal Register notice on April 23 that offers Canadian and Mexican aluminum and steel companies immediate tariff relief if they commit to moving production to the United States in the future. The notice follows an October 2025 proclamation by U.S. President Donald Trump that authorized the U.S. Department of Commerce to reduce Section 232 tariffs on steel and aluminum by up to 50 percent for Canadian and Mexican producers that expand their U.S. production capacity.

Last week’s Federal Register notice set forth several requirements for eligibility for these tariff reductions, including:

• Only applicants that produce steel or aluminum in Canada or Mexico and that supply, directly or indirectly (through incorporation into parts), to U.S. producers of automobiles or medium and heavy duty vehicles (MHDVs) are eligible.
• Only new commitments from qualified companies that will expand U.S. primary steel (i.e., steel articles produced in a basic oxygen furnace, electric arc furnace, or any other steel-making furnace in the United States) and primary aluminum (i.e., aluminum articles produced in a smelter in the United States) production capacity for key products (automobiles and MHDVs and their parts) are eligible.
• Only imports of steel and aluminum that qualify for preferential tariff treatment under the United States, Mexico, Canada Agreement and that were melted and poured, or smelted and cast, in Mexico or Canada are eligible.

Any tariff reductions that are granted will be limited to quantities of qualifying imports equal to the projected annual new production capacity. The reductions also only will be offered for a fixed period of time that will be determined by the Department of Commerce. The notice also establishes procedures for the submission and review of documentation substantiating new U.S. production capacity commitments.

Read more at this link and at this link.

As a reminder, when it comes to the United States’ Section 232 steel and aluminum tariffs, Connecting the Dots reports developments for members’ information only. MSCI consistently has argued that global overcapacity and other unfair trading practices, particularly by China, have harmed the U.S. steel and aluminum markets. To address this circumvention, MSCI has advised officials to provide relief for producers up and down the supply chain and to consider the consequences of any new trade policy, including:

• The economic impact of global overcapacity on the entire domestic metals supply chain;
• Transition times and implementation rules to any new policy;
• Availability of domestic metals to meet U.S. national security needs, as well as general industrial and consumer demand; and
• Trade flows under current free trade agreements, including the USMCA.

MSCI also asked that Canada and Mexico be excluded from any trade penalties. Click here to review all of MSCI’s advocacy on Section 232 tariffs.