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• Approved smelter investors can import primary aluminium at half the standard Section 232 tariff rate.
• Reduced-duty volumes will be tied to the expected annual output of each approved U.S. project.
• Eligible projects must build, expand or refurbish domestic primary aluminium capacity.
• The Commerce Department can withdraw tariff benefits when companies fail to meet investment commitments.
• Aluminium buyers should verify whether supplier quotations pass through the lower import duty.

The United States has created a tariff incentive for companies that commit money to new or expanded domestic aluminium smelting capacity. Approved companies will be allowed to import a volume of primary aluminium equal to the expected annual output of their U.S. project at half the normal Section 232 tariff rate. With the standard rate set at 50 percent, qualifying imports could enter at a 25 percent rate.

Companies seeking the lower rate must submit an onshoring plan to the Commerce Department. The plan must cover the construction, expansion or refurbishment of a U.S. facility capable of producing primary aluminium. Construction must begin by January 20, 2029, and the government will assess project costs, production estimates, milestones and commercial schedules before granting approval.

The tariff benefit will be tied to expected domestic production. A company planning a smelter with annual output of 300,000 tonnes could seek reduced-duty treatment for a matching quantity of imported primary aluminium. Refurbishment projects will receive relief based on the value of the investment rather than the full capacity of the plant.

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The measure could lower landed costs for approved producers during the long period between construction and the start of domestic output. Aluminium smelters require large capital commitments, stable electricity supplies and several years of development. The government said current U.S. primary aluminium capacity does not meet domestic demand, including requirements from defence, transport and other industrial users.

Aluminium buyers will not receive the reduced tariff automatically. The benefit will apply to imports made by companies with approved investment plans or their designated representatives. Fabricators and manufacturers should ask suppliers whether their metal qualifies for the lower rate and whether the saving is reflected in the delivered premium.

The policy comes as aluminium prices and regional premiums remain high. Three-month London Metal Exchange aluminium traded around $3,169.50 per tonne, with analysts expecting U.S. prices and premiums to stay elevated because domestic smelting capacity remains limited and electricity costs restrict new production.

Purchasers should separate the LME metal price, regional premium, tariff and delivery charges when reviewing quotations. A reduction in the tariff component does not require a matching fall in the global aluminium benchmark. Suppliers receiving the tariff benefit should be asked to show the duty rate applied to each shipment and explain how it changes the final invoice.