Trump Administration: "Aluminum Tariffs Halved for U.S. Plant Construction"
Based on Section 232 of the Trade Expansion Act
50% Aluminum Tariff Imposed
Incentivizing Domestic Production Expansion
U.S. President Donald Trump is responding to reporters' questions at Andrews Joint Base on the 19th (local time). Photo by AP
View original imageU.S. President Donald Trump has signed a proclamation to halve the current 50% tariff on aluminum imports, provided that companies build new or expand existing production facilities within the United States.
On the 20th (local time), President Trump stated in the proclamation, "It is necessary and appropriate to establish an incentive program for companies investing in new primary aluminum production capacity in the United States," announcing this policy decision.
Previously, the Trump Administration imposed tariffs on steel, aluminum, automobiles, and auto parts after the start of its second term, based on Section 232 of the Trade Expansion Act. The tariff on aluminum currently stands at 50%. Section 232 allows the President to restrict imports if they are deemed to threaten U.S. national security.
In this proclamation, President Trump stipulated that if a company's "onshoring" plan is approved by the U.S. Department of Commerce, the company will be eligible for an annual application of half the Section 232 tariff rate on imported primary aluminum in an amount equivalent to the expected annual production volume of the newly approved facility.
President Trump noted, "Secretary (Howard Lutnick of the Department of Commerce) determined that revising the aluminum tariff structure is important to encourage an increase in primary aluminum production in the United States," and pointed out that domestic supply is currently failing to meet demand. He further explained that aluminum is "an essential resource for the U.S. economy and the national defense industry."
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This tariff reduction measure is also considered an incentive to expand primary aluminum production. While President Trump did not specify the background in detail, it is believed that his mention of the "defense industrial base" may have been influenced by the situation in the Middle East war that has continued since late February.
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