Updates to U.S. trade policy may impact the metal recycling industry

According to updated information from the Recycled Materials Association (ReMA), several new developments in U.S. trade policy are drawing attention from the global recycling industry, particularly in relation to trade in recycled materials and manufacturing sectors that rely on recycled inputs.

First, the Office of the United States Trade Representative has initiated 76 investigations under Section 301 of the Trade Act of 1974 to assess the impact of excess capacity and overproduction in global manufacturing industries, as well as issues related to forced labor within supply chains. These investigations involve 16 economies, including Vietnam along with several other major trading partners.

In addition, the United States is currently applying a temporary tariff of 10 percent under Section 122 of the Trade Act of 1974 for a period of up to 150 days, as the U.S. government reviews new trade policy tools following the annulment of certain previous tariff programs by the courts.

Furthermore, the USTR is also seeking public comments on the development of a trade agreement related to critical minerals, which includes provisions to promote market-based supply and encourage the use of recycled metal scrap in domestic production in order to strengthen supply chain resilience.

The ReMA stated that it is preparing to submit comments to the USTR opposing restrictions on the export of recycled materials, while also advocating for open trade policies to ensure the stable flow of recycled raw materials in international trade.

These developments may affect the global trade flows of metal scrap, as well as the supply chains of manufacturing industries that depend on recycled materials. Therefore, businesses in the sector are advised to closely monitor updates in international trade policies in the coming period.