United States establishes Section 232 investment incentive for primary aluminum production
Date of publication: August 3, 2026.
On July 20, 2026, President Trump issued a proclamation establishing a new incentive program under the Section 232 aluminum tariff regime. The action is intended to encourage investment in U.S. primary aluminum production capacity, including new facilities, expansions, and refurbishments.
Under the program, companies may submit onshoring plans to the Department of Commerce. Approved applicants may be permitted to import an annual quantity of primary aluminum equal to the reasonably anticipated output of their completed U.S. project at one-half of the otherwise applicable Section 232 duty rate. Plans must include a commitment to begin construction by January 20, 2029 and will be evaluated based on project timing, commercial reasonableness, projected production, costs, and other criteria established by Commerce.
The program will be subject to ongoing monitoring, reporting, and enforcement. Benefits may be rescinded - including retroactively where permitted by law - if a company substantially fails to meet its commitments or has engaged in fraud or misrepresentation. The proclamation directs Commerce, in consultation with other agencies, to determine and publish any necessary HTSUS modifications through a Federal Register notice.
Global trade professionals should monitor forthcoming Commerce guidance and Federal Register notices for application procedures, eligibility requirements, HTSUS implementation details, and the effective date of any reduced-duty treatment.
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