Aluminum Association outlines policy priorities for upcoming US administration
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The Aluminum Association, which represents companies that make around 70% of the aluminium and aluminium products shipped in North America, has released Aluminum for America: A Presidential Policy Brief, a new framework laying out strategic policy priorities for the incoming Trump administration and new Congress.
This plan tackles the major challenges facing the domestic aluminium sector and calls for a national strategy to prioritise, produce and defend critical materials like aluminium. According to a 2024 economic impact study, the US aluminium industry generates nearly $228 billion in direct and indirect economic impact and nearly 700,000 jobs, including 164,000 direct industry jobs. The US aluminium industry has invested more than $10 billion in mid-and downstream processing and recycling capacity over the last decade, while US primary aluminium production continues to decline.
“American aluminium is already growing and expanding with robust demand and investment. But we need decisive policy action to unlock its full potential. By working with the new administration and Congress, we can ensure that this growth continues to support hundreds of thousands of American jobs while driving innovation in US manufacturing,” said Charles Johnson, president and CEO of the Aluminum Association. “Policymakers across the spectrum recognise the vital importance that aluminium plays in a strong national economy and defense. Working together, America can win the future of aluminium production and recycling.”
The briefing emphasises the following priorities for a healthy and competitive US aluminium industry:
- Pursue strong, targeted trade enforcement: Enforce robust, targeted trade policies to counteract government-subsidised production and ensure fair competition globally. Unfair trade practices by China are the single largest threat to US aluminium producers. Responses should include stronger import monitoring and tariff harmonization in North America. Such actions will begin to address the $60 billion in subsidies to Chinese aluminium firms that have roiled global markets and put some domestic aluminum assets out of business in recent years. Trade enforcement should be aggressive but targeted to reinforce the partnerships and supply chains that ensure America’s aluminium manufacturing dominance, starting with vital partners like Canada.
- Collect and keep more aluminium for America: Improve collection infrastructure and support policies, including recycling refund and Extended Producer Responsibility (EPR) programmes, to boost domestic recycling and secure an essential source of metal supply. Scrap aluminium has always been a critical input material for aluminium manufacturing and material availability encourages and supports domestic investment. Policies to invest in recycling infrastructure and encourage consumer recycling will help reclaim that material – including the more than $1 billion worth of aluminium beverage cans alone currently wasted in landfills each year. Improving aluminium recycling will fuel domestic production and cut energy consumption by 95% compared to making new aluminium. Today, recycled aluminium makes up more than 80% of US aluminium production.
- Recognise aluminium as critical for economic and national security: Create a national strategy to secure aluminium supply chains, recognising the material’s vital role in critical sectors of the US economy. Today, aluminium is one of only 11 mineral commodities recognised by the US government as essential to all aspects of the US economy. Prepare for an expected 80% rise in global demand by 2050 with expanded domestic capacity through access to clean, affordable and abundant energy. Such a strategy could eliminate reliance on materials from non-market or adversarial countries by prioritising critical material production and supply (including alloying materials). A national strategy must also make it easier to bring new, affordable electricity generation online for energy-intensive primary aluminium smelters in particular and to upgrade ageing facilities.
- Invest in America by investing in aluminium: Augment the industry’s billions in private investment over the past decade with smart infrastructure, tax, and energy policies. Support pro-growth tax policy to strengthen aluminium manufacturing and encourage investment – including the continuation of President Trump’s Tax Cuts and Jobs Act. Maintain and expand programmes that promote clean energy and modern American manufacturing, like the Advanced Manufacturing Tax Credit (45X).
Aluminium demand continues to grow, up 5.2% year-over-year in North America (US and Canada) through the first half of 2024. In the last decade, Aluminum Association member companies have announced more than $10 billion in domestic manufacturing operations – including new, US-based greenfield facilities for the first time since the 1980s. Aluminium is growing thanks to increased demand for sustainable packaging, safe and efficient vehicles, greener buildings and vital infrastructure.
Learn more about the Aluminum Association’s policy priorities here.
