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| ReMA |
Recycled Materials Association Confirms Scrap Metal Exemption from Tariffs
The Recycled Materials Association (ReMA) has confirmed that ferrous and aluminum scrap remain exempt from the latest US steel and aluminum tariffs. According to ReMA’s review of the executive orders reinstating Section 232 tariffs, scrap metal imports will continue to trade freely across US borders.
Scrap Exclusion Maintained in Tariff Policy
Adam Shaffer, assistant vice president of international trade and global affairs at ReMA, stated, “After careful analysis of the full presidential proclamations released Friday (Feb. 14), imports of recycled steel and recycled aluminum remain excluded from these particular tariffs.”
Scrap metal has been excluded from such tariffs since their introduction in 2017 and 2018, and this exemption will persist under the latest measures.
ReMA has pledged to keep its members informed on other trade policy changes, including new reciprocal tariffs proposed by the White House. “We’re looking into how this would impact traders of recycled materials and how best to work with the administration to try to limit these impacts,” Shaffer added.
Impact of Tariffs on US Steel and Aluminum Markets
The tariff increase on aluminum imports from 10% to 25% is set to take effect on March 12. Previous exemptions for certain nations are also due to expire. A universal 25% tariff on steel and aluminum imports will apply to all countries, including Canada and Mexico.
While the Illinois-based Aluminum Extruders Council (AEC) supports the tariffs, stating they will “help significantly to clamp down on the surge of unfair imports,” US steel mills have not yet seen increased production levels.
According to the American Iron and Steel Institute (AISI), domestic raw steel production for the week ending Feb. 15, 2025, stood at 1.67 million tons, down 0.3% from the previous week and 3.2% lower than the same period in 2024. US mills operated at 75% capacity, a decline from 75.2% the prior week and 77.7% a year earlier.
AISI President and CEO Kevin Dempsey emphasized that overcapacity remains a major concern, citing global steel overcapacity at 573 million metric tons in 2024. “If unaddressed, this overcapacity can fuel surges in injurious imports into our market,” Dempsey warned.
The evolving US trade policy landscape will remain a key focus for industry stakeholders as the March 12 tariff implementation date approaches.
