Overview
- The president signed a proclamation using Section 232 trade authority that instructs the secretary of commerce to design an onshoring incentive program for primary aluminum.
- Under the program, companies that submit and receive approval for onshoring plans would be allowed to import a matching amount of primary aluminum at a reduced tariff equal to half the otherwise applicable Section 232 rate.
- The Commerce Department will monitor approved plans and has authority to stop, rescind, or retroactively revoke tariff benefits if companies fail to meet their commitments.
- Key program details — including who qualifies, application timelines, and enforcement procedures — were left to Commerce to draft and have not yet been published.
- The move builds on prior use of Section 232 tariffs and is pitched as a tool to attract investment to U.S. smelters because domestic primary-aluminum capacity currently lags national demand for high-strength alloys used in defense and other industries.