The administration of Donald Trump has announced changes to the tariff regime on aluminum imports into the United States, a metal widely used in almost every sector of the economy, including sectors relevant to national security.
The White House has in fact established that companies investing in the construction or expansion of smelting plants in the United States will be able to receive incentives equal to half of the current 50 percent tariff on raw aluminum. The goal is to encourage the development of a domestic supply chain and reduce foreign dependence of the aerospace and defense industries in particular.
THE STATE OF THE ALUMINUM INDUSTRY IN THE UNITED STATES
The statement released by the White House reads that aluminum is a “fundamental material for the production of U.S. military systems, including armored vehicles, warships, spacecraft, and missiles, as well as other strategically important products.”
The problem is that, at the moment, the United States depends on imports because its production capacity is very limited: it accounts for only 1.7 percent of the global total. About half of all aluminum used in the country therefore comes from abroad, especially from Canada, which with 3.2 million tons in 2024 is worth twice as much as all the next nine suppliers combined. Besides Canada, the United States mainly sources from the United Arab Emirates (347,000 tons) and China (222,800 tons).
In 2023, America purchased steel, aluminum, and iron and steel products from Italy worth 2.7 billion dollars: that year we were the tenth largest supplier.
THE PROBLEM WITH ALUMINUM FOR DEFENSE
According to the think tank Safe, the United States especially lacks foundries capable of producing high-performance aluminum alloys, required by the defense industry for the manufacture of missiles, fighter jets, and advanced combat armor such as ballistic plates and exoskeletons. In the last twenty years, the number of these plants on American soil has dropped from twenty-two to four.
Safe’s estimates say that by 2029 the United States will be able to meet only a quarter of the expected aluminum demand. According to the research center, supply disruptions can quickly escalate into “operational risks for the armed forces.”
The White House has also admitted that “U.S. demand for primary aluminum currently exceeds the production capacity of American smelting plants.”
NEW RESTRICTIONS ON PURCHASES FROM ADVERSARY NATIONS
In addition to providing favorable conditions for companies investing in expanding manufacturing capacity in the United States, the Trump administration has also tightened the requirements that allow companies to obtain waivers for purchasing critical materials from “adversary” nations such as China and Russia, in the absence of alternatives.
THE REACTION OF COMPANIES
The CEO of Century Aluminum, an American company, welcomed the tariff relief, stating that the decision will make it “easier to make investments like the one in Oklahoma Primary Aluminium,” a new foundry, as reported by the Financial Times.
The Aerospace Industries Association, a trade association, was less positive: it said it “appreciates the administration’s efforts to reduce U.S. dependence on hostile nations regarding critical materials,” but believes the new restrictions “will hinder achieving those goals.” “For many of the identified minerals,” it explains, “national sources either do not currently exist, or the United States lacks the capacity, scale, or purity requirements needed to meet demand.”
For example, China – the main geopolitical rival of the United States – dominates the markets for rare earths, antimony, gallium, and germanium, all elements highly relevant to the defense industry.
