Following the introduction of new import tariffs by the US government, the recycling industry is sounding the alarm. The US Recycled Materials Association (ReMA) warned that Wednesday's imposition of new, reciprocal tariffs on imports would "significantly disrupt US manufacturing and recycling operations that depend on recycled-material inputs".
"The U.S. recycled materials industry is a net exporter and supports nearly 600,000 jobs nationwide, with the exports of recyclables helping to reduce the US trade deficit," noted the association, which formerly operated as ISRI. "US recyclers rely on international market access to support their workforce, and these new tariffs, and any retaliatory measures they may provoke, will only reduce the competitiveness of our industry and the manufacturers that rely on recycled materials," said the industry advocacy group.
On 2 April, President Trump invoked emergency powers to introduce a series of individualised tariffs on US trading partners, with tariff levels set based on the size of the deficit in goods trade between the US and the shipment's country of origin. A baseline tariff of 10 per cent will be imposed on goods from all countries beginning on 5 April, while higher tariffs on countries "with which the United States has the largest trade deficits" are to kick in on 9 April. The general tariff announced for imports from the EU has been set at 20 per cent.
Copper excluded from tariff scheme
Wednesday's announcement did not include new duties on copper and copper scrap which are anticipated by the market. Mr Trump signalled his intention to impose duties on copper in late February under Section 232 of the Trade Expansion Act, which gives the president authority to impose trade restrictions on imports which threaten US national security. The president began preparations for tariffs by directing the Secretary of Commerce to carry out the investigation required by the statute. In his address to Congress in early March, Mr Trump also spoke of a tariff level of 25 per cent in connection with a number of commodities, including copper.
On Thursday, ReMa said that it had filed formal comments regarding the U.S. Department of Commerce’s national security investigation of imports of copper. "ReMA supports the administration’s efforts to ensure a robust American copper industry, but strongly opposes restrictions on trade in recycled copper, and restraints on recycled copper exports in particular," the organisation said.
ReMA also stressed that the presence of American industries in export markets was one of the many areas in which the recycled materials industry contributed to America’s global economic competitiveness. "Recycled materials are among the nation’s largest commodity exports by volume, comparable to agricultural and energy products like grain and corn, cotton, timber, and petroleum," the association noted in the comments it submitted to the ongoing investigation.
While the Commerce Department has 270 days to present its report on the national security effects of copper imports, including scrap copper, the economic news agency Bloomberg was reporting last week that copper tariffs were now expected within weeks rather than months.
Despite copper's exclusion from to the "Liberation Day" reciprocal tariff scheme, the context of the exemption suggests that further material-specific tariffs are not off the table. Among the exempted goods named in a White House fact sheet are "steel and aluminium articles and autos and auto parts already subject to Section 232 tariffs"; "copper, pharmaceuticals, semiconductors, and lumber articles"; and "all articles that may become subject to future Section 232 tariffs".
Steel scrap and aluminium scrap were not among the grades included in previous Section 232 tariffs and are not included in the exemptions list for the "reciprocal" tariffs announced this week. Accordingly, the would be subject to the new tariffs going into effect on 5 and 9 April.
