President Trump – Adjustment of Aluminum Imports

Increasing Tariffs on Aluminum Imports To 25%

Date Signed: February 11, 2025

Type of Action: Presidential Proclamation

Title: “Adjusting Imports of Aluminum into The United States”

Details: This proclamation increases the ad valorem tariff on aluminum imports from 10% to 25%, effective March 12, 2025. The action addresses national security concerns arising from global aluminum overcapacity and the continued high levels of aluminum imports into the U.S. market.

Key tariff provisions include:

• Increased Tariff Rate: The tariff on imported aluminum articles is raised from 10% to 25%.
• Termination of Alternative Agreements: Existing agreements with countries such as Argentina, Australia, Canada, Mexico, the European Union, and the United Kingdom are terminated, subjecting these countries to the new tariff rate.
• Monitoring and Enforcement: The Secretary of Commerce is directed to monitor imports of aluminum articles and inform the President of any circumstances that might necessitate further action under Section 232.

The administration asserts that these measures are necessary to protect domestic aluminum producers from global overcapacity, which has led to depressed prices and underutilization of U.S. smelting capacity.

Implications for Corporate, Trade, and Tax Clients:

• Trade and Corporate: Companies relying on imported aluminum may face increased costs and should reassess supply chains, sourcing strategies, and potential domestic alternatives.
• Tax: Higher import duties may impact overall tax liabilities. Businesses should explore tax planning strategies to mitigate the financial impact of these tariffs.
• Labor and Employment: Industries dependent on aluminum, such as automotive and aerospace manufacturing, may need to adjust workforce planning and operational strategies in response to potential price fluctuations and supply chain disruptions.

Industry Reactions:

Industry leaders have expressed concerns about the potential impact of these tariffs. For instance, automakers warn that the increased tariffs could raise production costs, potentially leading to higher vehicle prices for consumers. Analysts estimate that car prices could increase by approximately $500 to $2,000 due to the higher aluminum costs. Al Root, Here’s How Much Trump’s Steel Tariffs Could Raise Car Prices, Barron’s (February 11, 2025).

Critics argue that the tariffs may lead to higher input costs for manufacturers and inflate consumer prices, potentially negating any economic gains. Analysts also note the potential negative impact on the broader manufacturing sector, which relies heavily on aluminum. Josh Boak, Trump Steps Up His 2018 Tariffs on Steel and Aluminum, Risking Inflation on Promise of More Jobs, Associated Press (February 11, 2025). 

If you have any questions or require assistance navigating these new tariffs and their potential effects on your business, please contact Nolan J. De Jong or another member of the Maddin Hauser team.