On July 20, 2026, President Trump issued a new Presidential Proclamation aimed at further strengthening the U.S. aluminum industry.  The latest Proclamation builds upon the existing Section 232 aluminum tariff regime by introducing a strategic investment incentive program designed to bring primary aluminum production back to the United States.

According to the Proclamation, the Secretary of Commerce recently concluded that, while the Section 232 tariffs have supported and strengthened the domestic aluminum industry, the U.S. continues to face an insufficient supply of primary aluminum.  Further, because primary aluminum remains critical to both the U.S. economy and the defense industrial base, the Administration determined that additional measures are necessary to encourage domestic investment and production.

To address these concerns, the Proclamation establishes an onshoring investment incentive program for companies investing in new U.S. primary aluminum production capacity.  The Administration believes these measures will further strengthen the domestic aluminum supply chain and ensure that the Section 232 tariff regime continues to effectively address the national security risks identified by the Secretary of Commerce.  Below are the key criteria and mandatory commitments companies must include in their onshoring plans to qualify for this program:

• Requirements for Onshoring Plans: Companies can submit onshoring plans to the Department of Commerce.  To qualify, a plan must include a firm commitment to build, refurbish, or expand a U.S. facility that will produce primary aluminum, with construction commencing no later than January 20, 2029.

• Approval Criteria: The Secretary of Commerce shall consider all relevant factors, such as the anticipated start date of construction, whether the project timeline is commercially reasonable, whether the project milestones are commercially reasonable, anticipated annual production of primary aluminum from the onshoring project, whether the plan’s anticipated costs and primary aluminum production projections are reasonable, and how the benefits of the reduced tariff rate will be allocated between the applicants of the onshoring plan.

• Onshoring Benefits: If the Secretary of Commerce approves an onshoring plan, the company may annually import primary aluminum – in a quantity corresponding to the facility’s reasonably anticipated annual output – at half the otherwise applicable Section 232 tariff rate.  In other words, a company that builds new primary aluminum production capacity in the United States may be allowed to import an equivalent amount of primary aluminum at half the applicable Section 232 tariff rate.  Additionally, for facility refurbishments, any tariff benefit will be limited to the value of the company’s investment.

The Proclamation indicates that all approved onshoring plans will be subject to strict monitoring and enforcement by the Secretary of Commerce.  In particular, the Secretary of Commerce may require companies to submit audited reports to prove they are meeting their domestic manufacturing commitments.  If a company fails to meet its agreed goals, the tariff benefits can be completely rescinded.  Furthermore, if it is discovered that a company engaged in fraud or deliberately misled the government, the rescission of tariff benefits can be applied retroactively.   In that case, the government may collect previously owed tariffs and impose appropriate fines or penalties.

Overall, the Proclamation marks a notable shift in the Administration’s Section 232 aluminum strategy by coupling tariffs with investment incentives designed to expand domestic primary aluminum production.

The Husch Blackwell International Trade and Supply Chain team will continue to monitor these developments and provide updates as they become available.  If you have any questions or concerns, please contact your Husch Blackwell attorney.