Trump announces directives to strengthen domestic aluminum, critical mineral production

US President Donald Trump on July 20 signed two directives aimed at bolstering domestic aluminum production and securing critical mineral supply chains.

The move comes as the Trump administration has focused on reshoring domestic production for critical minerals and reducing reliance on trading partners for key components.

For aluminum, Trump directed the Secretary of Commerce to establish an incentive program for companies to invest in building, expanding or refurbishing aluminum smelters in the US.

Trump signed the proclamation under Section 232 of the Trade Expansion Act of 1962, which addresses the national security threat posed by aluminum imports into the US. This is the same trade law Trump used to impose 50% duties on steel and aluminum imports in June 2025.

The program will request onshoring plans from companies that if approved, will be eligible to import a certain level of primary aluminum into the US at a reduced tariff rate equal to half the Section 232 duties, or 25%.

"The Secretary has informed and advised me of his opinion that, despite the benefits from the aluminum tariff regime, the domestic production and supply of primary aluminum, which is critical to the U.S. economy and defense industrial base, is still in insufficient supply," Trump wrote in the proclamation. "In the Secretary's view, it is important to modify the aluminum tariff regime in a way to more effectively encourage increased domestic production of primary aluminum."

The US is heavily reliant on primary aluminum supply from Canada, and 90% of the aluminum scrap imported to support US manufacturers comes from Canada and Mexico, according to the Aluminum Association.

Executive order targets critical minerals

In a separate executive order, Trump targeted critical minerals and necessary components to secure US defense supply chains for certain equipment.

The order limits circumstances when the Defense Secretary should issue waivers for critical material imports from China, Russia, Iran and North Korea. China is a dominant global producer of both antimony and gallium, among other critical minerals, including graphite, germanium, and rare earth elements.

Currently, the Defense Secretary generally may not procure certain covered critical minerals melted or produced in these designated countries unless a waiver is granted. A waiver might be required because materials of certain quality and quantity cannot be obtained when needed at a reasonable price.

The order also includes requiring mitigation plans to onshore supply chains under certain circumstances, directs the Department of Defense to require more supply chain mapping for critical material and encourages defense contractors to begin qualifying new domestic sources of critical minerals, materials and other components used in national security procurements.

"To continue this dominance in an era of renewed great power competition, the United States must secure its supply chains against physical, cyber, and economic subversion," Trump wrote in the order.