President Trump signed a proclamation on 20 July 2026 directing the Commerce Secretary to establish an incentive programme offering companies reduced tariff rates—set at half the standard Section 232 rate—for primary aluminium imports if they commit to building, expanding, or refurbishing smelters in the United States, citing a gap between domestic demand and production capacity.

RF Report

US President Donald Trump has signed a new proclamation on 20 July 2026, adjusting tariffs on aluminium imports to address the gap between US demand and domestic production capacity.

The administration cited aluminium as critical to the economy and defence industrial base, noting that current US smelting facilities cannot meet demand.

This follows after Trump signed a proclamation revising his Section 232 national security tariffs on steel, aluminium, and copper imports on 1 June 2026.

Under the new policy, the Commerce Secretary will launch an incentive program offering companies reduced tariff rates for primary aluminium imports—set at half the standard Section 232 rate—in exchange for approved plans to build, expand, or refurbish aluminium smelters in the US. The tariff reduction is tied to the company’s onshoring capacity: the more aluminium a company commits to producing domestically, the higher its import allowance at the reduced rate.

The proclamation invokes Section 232 of the Trade Expansion Act of 1962, which authorises presidential tariff adjustments on imports deemed to threaten national security. Trump’s move aims to shift aluminium supply chains onshore while using tariff incentives rather than blanket restrictions to drive investment.

Below is the fact sheet of the signed proclamation:

Fact Sheet: President Donald J. Trump Takes Further Action To Adjust Imports Of Aluminum Into The United States

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 aluminium into the United States and drive new investment into the US aluminium industry.

  • The Proclamation authorises and directs the Secretary of Commerce to establish an incentive program for companies that will invest in building, expanding, or refurbishing aluminium 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 aluminium 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 utilised tariffs on imported aluminium to protect the national security of the United States and its defence and defence-adjacent industrial base.

  • Aluminium is a key input for the production of US military systems, including armoured vehicles, naval vessels, spacecraft, and missiles, as well as other key strategic products.
  • These products and their components are manufactured using high-strength advanced aluminium alloys, which can only be produced using primary aluminium.
  • US demand for primary aluminium currently outpaces the primary aluminium production capacity of US smelting facilities; therefore, this proclamation encourages increased reshoring of primary aluminium production.

BUILDING ON A RECORD OF SECURING CRITICAL INDUSTRIES: President Trump has long recognised that America’s national security and economic strength depend on rebuilding key sectors of our industrial base.

  • In his first term, President Trump revolutionised international trade by using Section 232 to address decades of short-sighted, globalist trade policies that had allowed our domestic steel and aluminium 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, aluminium, 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.