Trump Tariffs Fan Calls by European Metal Producers for Scrap Export Curbs
Total EU aluminium scrap exports were 345,000 metric tonnes in the first quarter this year, according to European Aluminium.
SEATTLE (Scrap Monster): Metal producers in the European Union are lobbying the bloc to impose export duties or curbs on scrap metal shipments 'in the next few weeks' to stem a sharp increase in flows to the United States caused by the Trump administration's trade policies.
Europe's metal producers are warning of a shortage of scrap and an upending of carbon-emission strategies after U.S. Donald Trump's 50% levy on imported steel and aluminium heightened demand, and sharply inflated prices, for tariff-free scrap.
The aluminium industry is asking the EU to stem outflows using export authorisation measures, hitherto only used during the COVID pandemic, when the European Commission demanded companies request permission to export protective gear and vaccine doses. Export tariffs would be another option.
'Scrap is a big issue,' said Eurofer director general Axel Eggert. 'We are asking for an export duty on scrap,' he said highlighting that most non-EU producer countries had restrictions in place.
Scrap is integral to the EU's push to reduce carbon emissions in the metal industry. Recycling saves up to 95% of the energy required for aluminium production and 80% for steel, the European Commission has said.
Scrap metal exports to the United States nearly tripled to 6,028 metric tonnes in the first three months of 2025 versus the same period a year earlier, albeit from a low base, turning a trickle into a flood, said industry lobby group European Aluminium, which includes Alcoa, Befesa and AMAG Austria.
Total EU aluminium scrap exports were 345,000 metric tonnes in the first quarter this year, according to European Aluminium. With the United States now keeping its scrap, the EU will be left as the main exporting region, it said.
Scrap exports were a growing problem for EU metal producers even before Trump imposed duties on imports of primary steel and aluminium in a bid to encourage U.S. domestic production, EU metal producers said.
A record 19 million tonnes of ferrous scrap left the bloc in 2023, the majority to Turkey, but also to India, Egypt, Pakistan and the United States, said European steel association Eurofer, which includes Tata Steel, Thyssenkrupp and ArcelorMittal.
Metal producers cannot wait for the bloc to strike a trade deal with Trump before taking action, European Aluminium's head Paul Voss said. European officials have said the EU may not be able to strike a full deal by Trump's July 9 deadline.
Export authorisations had not been used this way before 'but extraordinary times call for extraordinary action,' Voss added, calling for measures 'in the coming weeks'.
Courtesy: www.reuters.com