Tariff or no tariffs - the United States’ renewed trade stance aluminium imports is affecting many countries and their domestic industries for sure. If the countries facing the staggering 50 per cent tariff from the US administration are suffering from poor export orders, sluggish economy, and job loss, the same countries are also suffering from the same for aluminium scrap being exempted from tariffs. How? The exemption on aluminium scrap is bleeding the countries off their resources as most of them are diverting to the US.
Europe, for example, is suffering from a similar situation, leaving local recycling plants fight for survival. Firstly, the scrap leakage from the EU is creating a void in the domestic market, wherein it is an important source of raw material for producing low-carbon aluminium. Secondly, the recycling plants due to the inadequate availability of scrap in the market, are suffering from the loss of an annual turnover worth €40bn, which directly employs 25,000 people and supports overall 1 million jobs in Europe.
Thus, Brussels is preparing some countermeasures against the United States to support the domestic aluminium industry.
“Plants are already shutting down capacity, and for our recyclers this is not about shrinking profit margins but survival,” warned Paul Voss, head of trade body European Aluminium, adding that the bloc only had “weeks to get this right.”
Besides tariff exemptions, 50 per cent duties on primary aluminium imports are also indirectly contributing to scrap leakage, prompting the downstream sectors to buy more scrap to manufacture low-carbon aluminium products than purchasing high-priced primary metal. Paul Voss had warned this situation much in advance when he stated “The outflow of aluminium scrap from Europe is already alarming — and doubling US tariffs will only accelerate it.”
According to the UN Comtrade, the United States imported 544,570 tonnes of aluminium waste and scrap from Europe. If the same import volume continues for the remaining seven months of 2025, then the United States total import volume will amount to 1.3 million tonnes, up by 8.33 per cent Y-o-Y from 1.2 million tonnes.
Also read: Relief with a catch: Europe sees scrap leakage risk in US tariff exemptions
Considering these figures, the European Commission is mulling to impose a number of measures, including levying duties on all EU scrap exports to the world, with effect from September.
“By the end of the third quarter at the latest, the commission will consider trade measures to ensure sufficient availability of scrap,” said one, although both officials stressed that no final decision had yet been made.
However, in July, the EU-US revised trade deal reached an agreement for 15 per cent single tariff rate to most imports into the United States, including semiconductors, as well as zero rates for certain products imported into the EU, thereby eliminating the risk of cumulative duties and offering greater predictability for businesses engaged in transatlantic trade. The US even pledged Brussels up spending and investment in the US.
Brussels is also pushing for a quote that would spare some EU aluminium and steel exports from tariffs. Between 2019 and 2024, EU exports of aluminium scrap grew by 53 per cent, while domestic use was up only 5 per cent.
Europe also exports a substantial amount of aluminium scrap to Asia. For instance, to India, Europe exported 260,899 tonnes of aluminium waste and scrap in the first five months of 2025, while to China, it shipped 90,235 tonnes. Then why is Europe considering to take countermeasures only against the US and not Asia? That’s because the US exemption move for aluminium scrap has made the European scrap more profitable to be traded to the US. Moreover, the European Union already has strict regulations on scrap exports to Asia, and its concerns about Asian recycling capacity and environmental standards are part of a longer-term policy approach, not an immediate, tariff-driven market disruption.
But any changes ought to face resistance as well. Olivier François, president of trade body EuRIC has warned against “introducing measures that could unintentionally harm the competitiveness of the European recycling industry without improving circular materials’ availability for EU manufacturers”.
A commission spokesperson said: “Global overcapacity is a serious threat to the profitability and competitiveness of this sector. This is why the commission has put in place a monitoring tool on scrap, and will carefully assess the data collected before taking further steps.”
The commission had already put tariffs on many imports of steel, aluminium and ferroalloys, the spokesperson added.
Also read: EU deploys new scrap‑metal customs surveillance to tackle leakage
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