Relief with a catch: Europe sees scrap leakage risk in US tariff exemptions
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The Trump Administration’s latest aluminium tariff hike to 50 per cent has triggered renewed concern among traders and manufacturers over a further shift in trade dynamics to a point where export markets may face a deepening blow. European aluminium producers are neither immune to this strain as worries linger over an increasingly fragile trade environment and fear grows for the further destablisation of trade relations between the two key economic partners.
But more than tariff hike, what currently causes sleepless nights to the European aluminium industry is tariff exemption on scrap. Earlier, during the implementation of 25 per cent tariff effective from March 2025, the United States duty exemption on scrap already led to a heavy outflow of the material. Reportedly, the tariff gap had boosted an increased demand for scrap in the US domestic market, intensifying Europe’s supply.
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