The US-China trade war continues to impact multiple sectors, including recycled metals. President Trump recently paused reciprocal tariffs and increased tariffs on Chinese imports. This change has raised new challenges for U.S. recyclers, particularly in the copper sector.
US-China Trade War Disrupts Recycled Copper Trade
On April 9, President Trump announced a 90-day delay on the reciprocal tariffs. Instead, the U.S. imposed a 10% tariff on most imports, excluding Canada and Mexico. However, President Trump also raised tariffs on Chinese goods to 145%, affecting U.S. exports to China.
Recycled copper is one of the most impacted sectors. Adam Shaffer, Vice President of the Recycled Materials Association (ReMA), states that U.S. recycled copper exports to China account for nearly 10% of the total value of U.S. recyclable materials. China’s retaliatory tariffs on U.S. goods will likely disrupt U.S. copper exports.
Retaliatory Tariffs and Their Consequences
Shaffer warns that the Chinese retaliatory tariffs may create a significant disruption in U.S. trade. This would repeat the challenges experienced during President Trump’s first term. The escalating tariffs could make U.S. recycled materials less competitive globally, particularly in copper trade.
Exclusions to New U.S. Tariffs
The U.S. government has granted exclusions for certain products from the 10% tariffs. These include copper, steel, aluminum, and some pharmaceuticals. However, products like shredder wear parts from China are not exempt from the tariffs. Shaffer notes that the U.S.-China trade tensions make it unlikely that these exclusions will be extended.
At present, Chinese imports of shredder wear parts are subject to a 45% import duty. This includes 20% from emergency border tariffs and 25% from Section 232 tariffs, despite shredder parts not being made from aluminum.
The Broader Impact of Section 232 Tariffs on Steel and Aluminum
In addition to copper, the U.S. has imposed Section 232 tariffs on steel and aluminum imports. Canada retaliated with tariffs on $30 billion in U.S. steel and aluminum. The European Union initially planned tariffs on U.S. exports but suspended these measures. Fortunately, U.S. steel and aluminum scrap exports remain exempt from these retaliatory tariffs, offering some relief to U.S. recyclers.
Conclusion
The ongoing U.S.-China trade conflict continues to disrupt the U.S. recycled metals industry, especially copper exports. While certain exclusions may help reduce the impact, the overall uncertainty around tariffs, including recycled copper tariffs, leaves the industry facing volatility. U.S. recyclers must remain agile to navigate these turbulent market conditions.
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