The Trump administration has announced it will cut the 50 per cent tariff on raw aluminium feedstock for firms that build, expand or refurbish U.S. smelting plants. The relief, which halves the duty, is aimed at encouraging reshoring and reducing the defence sector’s reliance on foreign suppliers.

Aluminium is a key input for military systems, from armoured vehicles to missiles. A think‑tank report shows high‑purity aluminium production has dropped from 22 to 4 smelters in two decades, leaving the U.S. able to supply only a quarter of its projected demand by 2029 and exposing it to operational risks after Iran’s attacks on Middle‑East smelters that cost 5mn tonnes.

Companies must apply to the Commerce Department and pledge to commence construction by early 2029 to qualify for the tariff relief. The policy complements tighter rules on “sensitive materials” waivers, which aim to curb sourcing from adversaries such as China and Russia.

Industry voices are mixed. Jerry Mc Ginn said the relief complements recent policy changes, while the U.S. Aerospace Industries Association warned that limited domestic sources could hinder progress. Jesse Gary of Century Aluminum welcomed the move, saying it will make investments like Oklahoma Primary Aluminium more attractive.