Trump Aluminum Scrap Tariff Threat Raises Global Trade Uncertainty

The Trump aluminum scrap tariff threat has reignited uncertainty across global metals markets. President Donald Trump signaled a potential 10% duty on US aluminum scrap imports. He made the announcement hours after the US Supreme Court limited his earlier tariff authority.

The proposed measure would counteract the court’s rejection of tariffs under the International Emergency Economic Powers Act. However, no executive order had appeared at publication time. As a result, aluminum scrap remains freely traded for now.

Trump Aluminum Scrap Tariff Threat Targets Section 122 Authority

The Trump aluminum scrap tariff threat relies on Section 122 of the Trade Act of 1974. This provision allows temporary tariffs up to 15% for balance-of-payments concerns. However, the law limits such tariffs to 150 days without congressional approval.

Trump also floated action under Sections 232, 201, 301, or 330. Section 232 tariffs on primary aluminum already stand at 50% for most suppliers. Imports from the United Kingdom face a reduced 25% rate. Meanwhile, shipments from China often face stacked duties under existing rules.

These legal tools create complexity for aluminum scrap traders. Section 232 measures currently cover primary aluminum grades such as P1020. Scrap markets now await clarity on whether new duties would stack or replace existing frameworks.

Aluminum Scrap Trade Flows and USMCA Exposure

The Trump aluminum scrap tariff threat could reshape North American scrap flows. The US imported 581,000 metric tonnes of aluminum scrap between May and December 2025. The declared value reached $1.53 billion, according to the US Commerce Department.

Notably, suppliers in Canada and Mexico accounted for 89% of shipments. Those volumes enter largely duty free under the United States-Mexico-Canada Agreement. Therefore, any Section 122 tariff could disrupt established USMCA trade protections.

Fewer than half of the top 15 scrap suppliers faced higher reciprocal tariffs in 2025. Consequently, a flat 10% tariff may benefit some exporters while burdening others. Importers now question whether they can recover new tariff costs through pricing adjustments.

SuperMetalPrice Commentary:

The Trump aluminum scrap tariff threat injects fresh volatility into recycled metals markets. Secondary aluminum producers rely on stable scrap flows to manage input costs. Therefore, even temporary tariffs could tighten supply and lift regional premiums. Market participants should monitor Section 122 developments and USMCA interpretations closely. Strategic hedging and diversified sourcing will prove critical if Washington escalates trade measures again.