President Donald Trump issued an executive order on April 2, 2026, to fully enforce the 50 percent Section 232 tariff on primary aluminum by closing import valuation loopholes. The move is designed to bolster domestic manufacturers by ensuring the intended economic impact of the tariffs is not diluted.
In a press release, Century Aluminum Company (NASDAQ: CENX) applauded the new executive order, stating it will “level the playing field for American manufacturers.” The company has been a vocal supporter of the Section 232 tariffs, which aim to protect the domestic aluminum industry from foreign competition.
The core of the executive order is to eliminate valuation strategies that importers have used to undervalue goods and pay lower duties. While the 50 percent tariff rate on primary aluminum is unchanged, the stricter enforcement is expected to increase the cost of imports for downstream manufacturers that rely on foreign aluminum.
This policy enforcement is bullish for domestic producers like Century Aluminum and Alcoa. By closing circumvention loopholes, the measure could increase demand for and the price of domestically produced aluminum, directly benefiting companies with US-based smelting operations. Conversely, it could act as a headwind for companies in the construction and automotive sectors that depend on aluminum imports.
This article is for informational purposes only and does not constitute investment advice.
