On July 20, 2026, President Trump signed a new proclamation modifying the Section 232 aluminum tariff program and establishing incentives for companies that invest in domestic U.S. primary aluminum production facilities.
What Changed?
The Administration determined that while existing Section 232 aluminum tariffs have helped strengthen the domestic aluminum industry, U.S. production of primary aluminum remains insufficient to meet national security and economic needs.
To address this concern, the proclamation directs the Department of Commerce to create an investment incentive program for companies that:
Build new U.S. primary aluminum production facilities;
Expand existing facilities to produce primary aluminum; or
Refurbish aging facilities to increase production capacity or efficiency.
Reduced Tariff Benefit
Companies with approved investment plans may be eligible to import quantities of primary aluminum equivalent to the expected annual output of their U.S. project at 50% of the Section 232 duty rate otherwise in effect.
To qualify, participating companies must:
Submit an approved "onshoring plan" to the Department of Commerce;
Commit to constructing, expanding, or refurbishing a U.S. primary aluminum facility;
Begin construction no later than January 20, 2029; and
Meet ongoing reporting and compliance requirements established by Commerce.
Compliance and Enforcement
Approved projects will be subject to monitoring and oversight by the Department of Commerce. Companies that fail to meet their commitments may lose the reduced tariff benefits. In cases involving fraud or material misrepresentation, benefits may be rescinded retroactively, resulting in additional duty liability and potential penalties.
Additional Details
The Department of Commerce has been authorized to develop regulations, procedures, and guidance necessary to implement the program. Commerce will also determine whether updates to the Harmonized Tariff Schedule (HTSUS) are required and will publish any changes through the Federal Register.
What Importers Should Know
At this time, the proclamation does not change existing Section 232 aluminum tariff rates for most importers. Rather, it establishes a pathway for qualifying companies investing in U.S. primary aluminum production to receive reduced tariff treatment on certain imports of primary aluminum.
Deringer will continue monitoring implementation guidance from the Department of Commerce and provide updates as additional details become available. You can view the Fact Sheet here for more information.
Please contact your Deringer representative with questions regarding the impact of this proclamation on your imports or supply chain operations.
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.