President Trump Incentivizes Primary Aluminum Production

President Trump made a proclamation adjusting the Section 232 primary aluminum tariffs on Monday, introducing an “investment incentive program” through which aluminum tariffs can be reduced for companies that receive approval for their production expansion plans.

The program: The program is intended to incentivize the construction of new facilities for producing primary aluminum, the expansion of facilities so that they can produce primary aluminum and the refurbishment of facilities to expand or increase the efficiency of production.

The criteria: Eligible projects must begin construction by Jan. 20, 2029.

• Plans must include commercially reasonable milestones, timelines and projected costs as well as anticipated production projections.

Tariff offsets: An eligible company or its representatives can import some primary aluminum at half the Section 232 tariff, so long as that quantity corresponds to the “reasonably anticipated annual production” of its planned project.

• For refurbishments, the tariff adjustment will be pegged to the value of the company’s investment.

Auto and truck production: This new program follows a similar proclamation in October 2025, authorizing a reduction of Section 232 metals tariffs for certain steel and aluminum producers in Canada or Mexico based on their commitments to increase U.S. production capacity.