Trade Issues Affecting Mexican Recycling Firms

Mexico’s Aluminum Tariff Proposal Raises Industry Concerns

Mexico is preparing to impose a 10% tariff on imported primary aluminum, mirroring a similar move by the United States. The measure, introduced in the Mexican legislature, has raised alarms among recycling and manufacturing firms that rely on imported aluminum for production.

Alejandro Jaramillo, chair of the Bureau of International Recycling (BIR) Latin America Committee and trader at Glorem SC, says the proposal could backfire. “Mexico does not produce primary aluminum and has only limited flat-rolled capacity,” he notes. “The tariff will not protect domestic industry but will raise costs for downstream manufacturers.”

As global protectionism grows, industry players are struggling with volatile supply chains and rising costs. Jaramillo warns that uncertainty is already affecting investment on both sides of the U.S.–Mexico border. The U.S. manufacturing PMI remains below 50, reflecting continued contraction and highlighting how trade turbulence is hurting industrial confidence.

Aluminum Scrap Market and Regional Recycling Reactions

Mexico’s aluminum scrap market is adapting to the changing trade landscape. Jaramillo reports that domestic cast houses have cut production and shifted toward cheaper imported billet and slab rather than melting local scrap. Meanwhile, strong U.S. demand is pulling significant volumes of mill-grade scrap north, balancing reduced domestic consumption.

However, pressure is mounting for potential export restrictions. Jaramillo says measures such as export taxes or quotas are under discussion to keep more material within Mexico if the U.S. fails to reach a fair trade framework. The situation underscores the growing link between scrap exports, tariffs, and industrial competitiveness across North America.

Elsewhere in Latin America, members of the BIR Latin America Committee are lobbying for stronger support for recyclers. Roger Amarante of Brazil’s INESFA says manufacturers using recycled materials deserve tax credits. In Chile, Nicolas Fernandez from ANIR highlights the challenges of a new Extended Producer Responsibility (EPR) system for used beverage cans, which overlooks long-standing recycling networks.

Meanwhile, Nicolas Werba of Werba SA in Uruguay notes steady nonferrous scrap movement, supported by strong London Metal Exchange (LME) prices—particularly copper, which surpassed $10,000 per metric ton in September.

SuperMetalPrice Commentary:

The proposed Mexican aluminum import tariff reflects a broader regional trend toward economic protectionism and industrial self-sufficiency. While such policies aim to strengthen domestic markets, they risk distorting pricing and disrupting established recycling flows. With the U.S. and Mexico increasingly intertwined in critical materials trade, cooperation—not isolation—will determine the region’s long-term competitiveness. For recyclers and metal producers alike, policy clarity and trade stability remain essential to sustain growth and investment momentum.