Trump offers to cut aluminum tariffs in half for onshoring promises
Companies that agree to begin work on expanded aluminum production facilities by Jan. 20, 2029, will receive relief for the 50% levy under a to-be-established federal program.
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An article from Trump tariffs Trump offers to cut aluminum tariffs in half for onshoring promises Companies that agree to begin work on expanded aluminum production facilities by Jan. 20, 2029, will receive relief for the 50% levy under a to-be-established federal program.
Published July 20, 2026 Phil Neuffer Lead Editor Share Copy link Email / Print License Add us on Google Aluminum sheet coil at Novelis' Oswego, New York, production facility. The Trump administration has already established a process by which steel and aluminum producers from Canada and Mexico can qualify for lower tariffs.
Courtesy of Novelis Listen to the article 2 min This audio is auto-generated. Please let us know if you have feedback. More companies could soon be eligible for reduced U. S. tariffs on aluminum imports, according to a proclamation President Donald Trump signed Monday.
The missive specifically plots a course for the levy to be cut in half for companies on a certain quantity of aluminum imports each year in exchange for commitments to investment in domestic production of the metal. Most aluminum imports currently face a 50% tariff.
To encourage aluminum production onshoring, Commerce Secretary Howard Lutnick will establish a program for companies to apply for the reduced tariff rates, per the proclamation. To qualify, companies will be required to submit plans to build, refurbish or expand U. S. aluminum facilities and commit to beginning construction by Jan. 20, 2029.
The Commerce Department may also set requirements for additional information and analysis, per the proclamation, and will evaluate other factors prior to approval, including how commercially feasible a plan is as well as its anticipated annual aluminum production.
Once companies receive approval, their tariff burden will be halved each year for a volume of aluminum imports that matches projected production levels. Trump did not reveal further details about when the program will go into effect or what other information may be required for approval.
The White House did not immediately respond to a request for more information. This latest action from the Trump administration builds on a similar process the Commerce Department created this year for steel and aluminum producers based in Canada and Mexico.
The program offers to cut tariffs on the metals in half in exchange for commitments to invest in domestic production. Unlike Monday’s proclamation, the previous program stipulated that companies must be suppliers to U. S. manufacturers and ship goods that comply with the United States-Canada-Mexico Agreement.
Applicants are also required to submit information on major raw material sources and expected project milestones, necessitating intensive record-keeping to demonstrate ongoing compliance.
Recommended Reading Trump’s tariffs: Tracking the status of US trade actions By Phil Neuffer, Edwin Lopez • Updated July 16, 2026 Add us on Google Share Copy link Email / Print License Filed Under: Procurement, Regulation
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