President Donald Trump signed a proclamation on July 20 creating a tariff incentive program for aluminium smelters that rewards companies investing in domestic production capacity with reduced import duties.
Under the plan, companies that invest in new, expanded, or refurbished smelters for primary aluminium will see tariffs cut from 50 percent to 25 percent. Approved projects must begin construction by January 20, 2029, and once facilities are completed, companies may import a corresponding share of annual output at the reduced rate. The Commerce Department will review investment amounts and production projections before granting approval, and may revoke benefits retroactively if firms fail to meet commitments or misrepresent their plans.
Trump raised steel and aluminium import tariffs to 50 percent in June 2025. Primary aluminium is considered critical to the US defense industrial base, underpinning production of armoured vehicles, naval vessels, spacecraft, and missiles.