On July 20, 2026, President Trump signed a proclamation under Section 232 establishing a new incentive program designed to encourage investment in U.S. primary aluminum production while maintaining protections for the domestic aluminum industry.
The proclamation directs the Secretary of Commerce to establish an onshoring incentive program for companies that commit to building new primary aluminum smelters, expanding existing facilities capable of producing primary aluminum, or refurbishing outdated smelters to increase production capacity or improve efficiency.
Under the program, companies will be required to submit detailed onshoring plans to the Department of Commerce for approval. To qualify, construction on the approved project must begin no later than January 20, 2029.
Companies with approved onshoring plans will be eligible to import a commensurate quantity of primary aluminum at a reduced Section 232 tariff rate while the company fulfills its domestic investment commitments.
The annual quantity of aluminum eligible for the reduced tariff will generally be based on the reasonably anticipated annual production of the new or expanded U.S. facility. For refurbishment projects, however, the reduced-tariff import allowance will be limited to an amount corresponding to the value of the company's investment rather than projected production output.
The Department of Commerce will oversee the program and monitor compliance through reporting requirements, audits, and other verification measures. If a company fails to meet its approved commitments, the Secretary of Commerce may suspend or revoke the tariff benefits, including applying the full Section 232 tariffs retroactively. Companies that engage in fraud or misrepresentation may also face additional duties, fines, or other penalties.
Additional details regarding application procedures, eligibility requirements, and program administration will be published by the Department of Commerce in a future Federal Register notice.
Full details of the proclamation can be found below:
Further Strengthening Actions Taken To Adjust Imports Of Aluminum Into The United States