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| 10% New tariff on US imports |
Trump Introduces 10% Tariff with Specific Exemptions
The US will impose a 10% tariff on imports from February 24, 2026, replacing emergency tariffs struck down by the Supreme Court. Meanwhile, energy, critical minerals, fertilizers, and USMCA-eligible imports are exempt. As a result, aluminum scrap flows from Canada and Mexico remain largely unaffected, while non-USMCA suppliers face potential cost increases.
Meanwhile, President Trump invoked Section 122 of the 1974 Trade Act, allowing duties up to 15% to address balance-of-payments issues. However, tariffs under this section last only 150 days unless Congress explicitly authorizes extensions. Therefore, importers must monitor regulatory updates closely to mitigate exposure.
Market Implications for Aluminum Scrap and Global Trade
US imports of aluminum scrap totaled 581,000 metric tonnes, valued at $1.53 billion from May to December 2025. In contrast, the new tariff exemptions ensure minimal impact on USMCA-origin material. However, Section 301 investigations targeting China may impose additional duties on future imports. As a result, global scrap traders must assess supply-chain risks and adjust sourcing strategies.
Meanwhile, the executive order rescinds prior emergency tariffs, but does not provide refunds for previously collected duties. Therefore, companies may face prolonged financial uncertainty. The US aluminum scrap tariffs highlight the complex intersection of trade law, policy, and recycling market dynamics.
ScrapInsight Commentary
The new US aluminum scrap tariffs reinforce regional sourcing advantages for Canada and Mexico under USMCA. Non-USMCA suppliers may see price pressures. Strategic buyers must monitor Section 122 and 301 developments, as these measures could influence scrap flows and circular economy practices.
