Global Trade
July 21, 2026
US to halve aluminum tariffs for onshoring plans
Written by Stephanie Ritenbaugh
The US has offered to cut aluminum tariffs in half for companies that plan to expand primary aluminum production by January 2029, according to a proclamation President Trump signed Monday.
The incentive is geared toward companies that commit to building new facilities or expanding or refurbishing existing plants. Most aluminum imports face a 50% tariff under Section 232.
The proclamation, released Monday, states that, “Despite the benefits from the aluminum tariff regime, the domestic production and supply of primary aluminum, which is critical to the US economy and defense industrial base, is still in insufficient supply. In the (Commerce) Secretary’s view, it is important to modify the aluminum tariff regime in a way to more effectively encourage increased domestic production of primary aluminum.”
As outlined in the proclamation, Commerce Secretary Howard Lutnick would create a program for companies to invest in smelters in the US, provided construction begins by Jan. 20, 2029.
If a plan is approved, the company would be allowed to annually import a quantity of primary aluminum corresponding to the facility’s anticipated annual primary aluminum output at half the Section 232 tariff rate.
