For the past few years, news outlets have focused intensely on the US government’s proposals for increased tariffs on steel and aluminum. The tariffs are part of his administration’s plan to lower trade deficits with other countries. Government officials hope that implementing tariffs on certain strategic goods will also support domestic industries. A particular focus of the government has been metal tariffs. The United States uses tariffs to charge a premium on imported steel, essentially creating a barrier to entry for foreign steelmakers. Over the course of 2018, US steelmakers saw high demand for domestic steel, that resulted in higher prices in new steel, as well as scrap metal. Scrapyards, professional recyclers and hobbyist scrappers are all watching the tariff situation closely. It’s uncertain what the future holds but understanding the effects of tariffs can help scrap metal recycling industry plan ahead.
How Do Tariffs Affect Scrap Metal Recycling?