President Trump issued July 20 a proclamation that envisions lowering Section 232 tariffs on some imports of aluminum.
According to a White House fact sheet, the proclamation directs the Department of Commerce to establish an incentive program for companies to engage in building new U.S. facilities capable of producing primary aluminum, expanding U.S. facilities to become capable of producing primary aluminum, or refurbishing outdated U.S. facilities that produce primary aluminum to expand their production or increase efficiency. Such onshoring plans would have to include a commitment to begin construction by Jan. 20, 2029.
Companies whose plans are approved by the DOC would then be eligible to import a quantity of primary aluminum, corresponding to the reasonably anticipated annual production of primary aluminum by their U.S. facility, at half the otherwise applicable Section 232 tariff rate (currently 50 percent).
This tariff benefit could be rescinded if the DOC determines that a company is substantially failing to meet its onshoring commitments. It could also be rescinded retroactively if the company is determined to have engaged in fraud or deliberately misled the federal government with respect to its commitments.
Copyright © 2026 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.