US Tariff Threat Puts Canadian Scrap Supply at Risk

US Tariff Threat Could Disrupt Canadian Scrap Supply

US president Donald Trump’s threat to impose 100% tariffs on Canadian imports may unsettle scrap metal flows.
US steel and aluminium producers rely heavily on Canadian feedstock to supplement domestic supply.
The tariff risk follows Canada’s potential trade deal with Beijing, raising uncertainty over USMCA exemptions.

Currently, USMCA-compliant imports remain exempt from prior tariffs, but it is unclear if new tariffs will change this.
The White House has not issued an executive order or clarified which Canada-China agreement triggered the threat.
This ambiguity keeps US and Canadian scrap markets on edge as producers plan for 2026.

Canada’s Role in US Scrap Imports

Canada dominates US scrap imports for both aluminium and ferrous metals.
From January to October 2025, Canada supplied 396,000 tonnes of aluminium scrap—about 55% of US imports.
The country also accounted for 63% of ferrous scrap imports, making it a critical source for US steelmakers.

Mexico remains the second-largest supplier, shipping 223,000 tonnes of aluminium scrap and 444,000 tonnes of prime ferrous scrap.
Any disruption from tariffs could push US producers to seek alternative suppliers, impacting scrap pricing and availability.

SuperMetalPrice Commentary:

US tariff uncertainty could tighten scrap supply and push up domestic prices in 2026.
Producers with diversified import channels may maintain stable operations, while smaller buyers face cost pressures.
Canadian shippers should monitor US trade policy closely, as executive decisions will shape North American scrap flows.