 |
| Aluminum scrap tariff |
Trump Considers 10% Duty on Imported Aluminum Scrap
The US government may impose a 10% tariff on aluminum scrap imports. This follows the Supreme Court ruling that struck down last year's country-specific "reciprocal" tariffs. As a result, global scrap trade faces uncertainty. Importers and recyclers must assess potential cost impacts on P1020 and secondary aluminum grades.
Meanwhile, President Trump signaled he could use Section 122 of the 1974 Trade Act. This allows duties up to 15% to address balance-of-payments issues. However, tariffs under this section last only 150 days unless Congress approves an extension. Therefore, companies need to monitor US regulatory updates closely.
Market Implications for Aluminum Scrap Traders and Producers
US imports reached 581,000 metric tonnes valued at $1.53 billion from May–December 2025. Yet, tariff impact was minimal because 89% of shipments came from Canada and Mexico under USMCA, which generally exempted duties. In contrast, non-USMCA suppliers may face new trade costs. Consequently, global scrap flows could shift toward countries with favorable duty treatment.
Meanwhile, Section 232 tariffs on primary aluminum remain at 50%, except for UK imports at 25%. Trump also hinted at actions under sections 201, 301, or 330. As a result, market participants must evaluate overlapping regulations and potential stacking of duties. The focus on US aluminum scrap tariffs underscores strategic sourcing challenges for steelmakers and smelters.
ScrapInsight Commentary
The latest US aluminum scrap tariff threat introduces volatility in global scrap markets. Prices may increase for non-USMCA imports, while Canada and Mexico remain advantaged. Recyclers and policymakers should track Section 122 applications, as outcomes could influence both pricing and circular economy incentives.
