On July 20, the White House announced another change to the Section 232 aluminum program—not by raising tariffs again, but by creating an incentive for companies that invest in new U.S. primary aluminum production.
Under the proclamation, the Secretary of Commerce is directed to establish a program allowing companies that commit to building, refurbishing, or expanding U.S. primary aluminum production facilities to apply for reduced tariff treatment on certain imported primary aluminum tied to those investments. Eligible projects must begin construction by January 20, 2029, and meet Commerce’s approval criteria.
Here is the Fact Sheet from the White House:
BOLSTERING DOMESTIC MANUFACTURING OF PRIMARY ALUMINUM: Today, President Donald J. Trump signed a Proclamation using his authority under Section 232 of the Trade Expansion Act of 1962 to address the national security threat posed by imports of aluminum into the United States and drive new investment into the U.S. aluminum industry.
- The Proclamation authorizes and directs the Secretary of Commerce to establish an incentive program for companies that will invest in building, expanding, or refurbishing aluminum smelters in the United States.
- The program will request onshoring plans from companies that, if approved, will be 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 will monitor and enforce all approved onshoring plans and, if a company fails to meet its agreed-upon commitments, may stop and rescind the tariff benefits, including retroactively.
STRENGTHENING ECONOMIC AND NATIONAL SECURITY: President Trump has utilized tariffs on imported aluminum to protect the national security of the United States and its defense and defense-adjacent industrial base.
- Aluminum is a key input for the production of U.S. military systems, including armored vehicles, naval vessels, spacecraft, and missiles, as well as other key strategic products.
- These products and their components are manufactured using high-strength advanced aluminum alloys, which can only be produced using primary aluminum.
- U.S. demand for primary aluminum currently outpaces the primary aluminum production capacity of U.S. smelting facilities; therefore, this proclamation encourages increased reshoring of primary aluminum production.
BUILDING ON A RECORD OF SECURING CRITICAL INDUSTRIES: President Trump has long recognized that America’s national security and economic strength depend on rebuilding key sectors of our industrial base.
- In his first term, President Trump revolutionized international trade by using Section 232 to address decades of short-sighted, globalist trade policies that had allowed our domestic steel and aluminum industries to weaken, impairing our national security.
- Since returning to office, President Trump has continued taking actions under Section 232 to protect and strengthen domestic manufacturing critical to our national and economic security, including imposing and strengthening tariffs on key goods such as steel, aluminum, copper, trucks, automobiles, timber, lumber, and pharmaceuticals.
- Through negotiations with foreign trading partners and the strategic use of tariffs, President Trump has secured trillions in private and foreign investment to bring American jobs and manufacturing back to the United States while diversifying global supply chains and reducing dependence on adversarial nations.
President Trump also imposed a new 50% tariff on roughly $20 billion worth of Canadian goods. The White House issued an official Fact Sheet stating that the penalties utilize Section 338 of the Tariff Act of 1930 to combat Canada’s alleged “retaliation and discrimination” against American motor vehicles, dairy, and alcohol.
Some items affected by these new tariffs may include high-power electrical equipment, machinery and tools, LED lighting fixtures and chandeliers, heavy industrial cement, and various structural wood products.
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