Trump order offers lower aluminum tariffs for firms investing in US smelters

President Donald Trump signed an order on Monday allowing US officials to offer lower aluminum tariff rates to companies that commit to support the creation or expansion of smelters in the United States.

The general US tariff on aluminum imports is 50 percent. Under the new plan, companies can qualify for half the applicable tariff rate if their investment plans are approved.

The White House said the order directs the commerce secretary to establish an incentive program for businesses that will invest in building, expanding or refurbishing aluminum smelters in the country.

Companies would have to submit business plans. If approved, they could import a commensurate level of primary aluminum at half the tariff rate, according to a White House fact sheet.

The White House said aluminum is important for producing US military systems, including armored vehicles, naval vessels and missiles.

Since returning to power last year, Trump has imposed broad tariffs on imports from US trading partners. The source says many of those tariffs were struck down by the Supreme Court in February, while sector-specific duties on industries such as steel, aluminum and automobiles remain in place.

Trump has also adjusted metals tariffs in recent months as companies have dealt with burdensome compliance systems.