On July 20, 2026, President Trump issued a new Section 232 proclamation that layers an “onshoring” incentive on top of the already‑escalated tariff regime for aluminum. The proclamation instructs the Secretary of Commerce to stand up a formal program under which companies that commit to build, refurbish, or expand U.S. primary‑aluminum smelters can qualify for a reduced Section 232 rate on imported primary aluminum. In practical terms, eligible importers can bring in primary aluminum at half the otherwise‑applicable Section 232 rate, but only in quantities tied to the new facility’s expected annual output once onshoring is complete.
To participate, companies must submit detailed “onshoring plans” to Commerce. At a minimum, a plan has to commit to a U.S. primary‑aluminum project, document that construction will begin no later than January 20, 2029, and provide whatever additional information Commerce requires on timing, capacity, costs, and how the tariff benefit will be shared among program participants. The Secretary is directed to approve or reject plans based on factors such as whether the construction timeline and milestones are commercially reasonable and whether projected primary‑aluminum output and investment levels are realistic.
Approved companies will be allowed to import primary aluminum each year at a 50‑percent Section 232 rate—i.e., half the otherwise‑applicable Section 232 duty—up to a ceiling that matches the facility’s reasonably anticipated annual output once the project comes online. The reduced rate functions as an investment offset: importers effectively trade a multi‑year commitment to U.S. smelting capacity for a temporary reduction in their Section 232 exposure on a defined volume of primary aluminum. For refurbishment projects, the proclamation makes clear that the tariff benefit must be proportionate to the value of the company’s investment, limiting the opportunity for windfall relief on modest upgrades.