Why Reshoring, Buy America, and Tariffs Are Changing the Aluminum Supply Chain

If you’re a prime or subcontractor navigating today's sourcing demands, you’ve likely seen the changes: increased scrutiny, expectations around U.S. content, and pressure to reshore. For federally funded projects—especially those tied to infrastructure, defense, and EV—the rules have shifted. What used to pass as acceptable is now falling short of Buy America, Build America Act (BABA) and traceability expectations.

What’s Fueling the Shift?

• Reshoring: Supply chain breakdowns, political risk, and lead time volatility have made U.S.-based sourcing more than a preference—it’s becoming a requirement. Federal agencies are increasingly pressuring contractors to use domestic suppliers to protect critical infrastructure, shorten supply chains, and reduce dependency on overseas producers during global disruptions. In sectors like defense and EV, domestic sourcing is now seen as strategic, not optional.

• Tariffs & Trade Policy: Section 232 of the Trade Expansion Act authorizes the federal government to impose tariffs on imports that threaten national security. In 2018, a 10% tariff was enacted on aluminum imports. In February 2025, these tariffs were expanded and increased to 25%, now covering nearly all countries without exception. This has forced a shift toward domestic aluminum, especially for contractors with margin pressure and federal oversight.

• Buy America / Build America Act (BABA) Requirements: Over the past year, BABA enforcement has accelerated across multiple federal agencies. In January 2025, the Federal Highway Administration (FHWA) terminated its longstanding general waiver for manufactured products, bringing fabricated aluminum and structural components squarely into focus. HUD took similar action in August 2024 for housing-related construction. These updates have shifted BABA from policy to practice: sourcing partners now need to provide material traceability, mill certifications, and proof of U.S. production without delays.

  
  

What It Means for Contractors & Manufacturers

If you’re delivering on federal or state infrastructure, defense, or public sector projects, you’ve already felt the shift. Expectations have moved beyond price and lead time to documentation, agility, and proof of domestic sourcing. Today’s sourcing partners need to:

• Provide domestic aluminum extrusions and fabrication

• Operate with ISO 9001-level systems

• Deliver traceability and mill certs without delay

• Stay responsive when projects shift or accelerate

  
  

How We Help Contractors Meet These Requirements

Northern States Metals is a veteran-led, Ohio-based company that partners with trusted aluminum extruders across the country and delivers in-house fabrication and finishing. Learn more about our aluminum fabrication services.

We’re set up to help you:

• Reduce sourcing risk with backup suppliers

• Accelerate timelines with flexible capacity

• Centralized communication and reduced admin friction

  
  

Examples of the Work We Support

• Defense: light vehicle frames, housings, mounting structures

• EV infrastructure: aluminum enclosures, structural supports, including BABA-qualified materials for federally funded charging projects

• Medical: diagnostic equipment chassis, clean room framing, modular aluminum framing for public health and lab infrastructure

• Infrastructure: pedestrian bridge components, railings, protective barriers

  
  

What to Look for in a Strategic Sourcing Partner

• Multi-source flexibility: Can they pivot if your current supplier is delayed or overcommitted?

• Integrated finishing: Are value-added services like cutting, machining, and anodizing available under one roof?

• Documentation readiness: Can they meet your customer’s traceability and delivery expectations?

• Cultural alignment: Do they communicate clearly and support your role with your customer?

  
  

Where Federal Sourcing Is Headed—and What to Watch

As of spring 2025, sourcing aluminum for federal projects is about much more than pricing. It’s about predictability, proof, and staying ahead of shifting requirements. Buy America and the Build America, Buy America Act (BABA) aren’t just line items anymore—they’re decision filters. If your supply chain isn’t flexible, fast, and aligned with today’s sourcing environment, you’re likely paying for it in time or margin.

If you're looking for a Midwest partner who can plug into your process and make aluminum sourcing the easy part—we’d love to talk. Let’s start a conversation about custom aluminum sourcing and see how we can support your next project.