President Donald Trump waves to the crowd before the trophy ceremony at the 2026 North and Central America World Cup final between Spain and Argentina at New York-New Jersey Stadium in East Rutherford, New Jersey, on Sunday. [AFP]
President Donald Trump waves to the crowd before the trophy ceremony at the 2026 North and Central America World Cup final between Spain and Argentina at New York-New Jersey Stadium in East Rutherford, New Jersey, on Sunday. [AFP]

The Trump administration signed a proclamation cutting aluminum import tariffs in half for companies that invest in domestic aluminum production facilities.

According to the Wall Street Journal and Reuters, the administration on Tuesday issued the proclamation, which allows companies that build new aluminum smelters in the United States, expand existing ones, or refurbish current facilities to import aluminum at a reduced tariff rate — provided they meet certain requirements and receive government approval.

"Aluminum is essential to the American economy and defense industrial base, and I have determined that it is important to restructure the aluminum tariff framework so that the Secretary of Commerce can effectively encourage the expansion of domestic production of primary aluminum," Trump said.

Primary aluminum is extracted directly from aluminum ore and has a high purity level, making it the material of choice in the defense sector — including fighter jets, missiles and warships.

Under the proclamation, companies that submit onshoring plans — committing to relocate production facilities to the United States — and receive approval may import primary aluminum at a 25 percent tariff rate under Section 232 of the Trade Expansion Act, proportional to the scale of their promised investment or production.

Section 232 of the Trade Expansion Act allows the president to restrict imports or impose high tariffs on goods deemed a threat to US national security. Trump imposed 50 percent tariffs on steel and aluminum imports last year.

However, the volume eligible for the reduced tariff is capped at a level commensurate with the company's US investment. The commerce secretary may also suspend and retroactively revoke the tariff reduction if an investment plan is not carried out.

The United States currently lacks the production capacity to meet domestic demand for primary aluminum and relies heavily on imports from Canada and the Middle East.

Only four aluminum smelters are currently operating in the United States, down sharply from 23 in 2000. About half of the aluminum consumed in the United States is produced in Canada.


yckim6452@heraldcorp.com