ISRI Hits Back At Proposal to Impose 25% Import Tariff on Aluminum Scrap

SEATTLE (Scrap Monster):  The Institute of Scrap Recycling Industries (ISRI) has released a statement in response to China’s proposed plans to impose import tariff on as many as 128 items imported into that country. Incidentally, aluminum scrap features as one among the eight items on which China plans to impose the higher tariff rate of 25%. The tariffs are being imposed by the Chinese administration to offset losses resulting from US import tariffs on steel and aluminum products.

The ISRI statement stated that the announcement by the Chinese government is likely to have major impact on US scrap export trade. Incidentally, the US had exported nearly 820,000 metric tons of aluminum scrap worth $1.2 billion to China in 2017. The country had accounted for nearly 50% of the total aluminum scrap imports by China during the year. Further, ISRI expressed concerns that the Chinese administration may come up with similar announcements in future, which may impact exports of additional scrap commodities.

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A 25% tariff would result in a price burden of approximately $300 million on trade relationship between both the countries. Earlier, ISRI had raised concerns about the import restrictions imposed by China on recycled commodities, saying that the restriction has already led to fundamental disruption in global supply chains of scrap materials.

A press release by the Chinese Ministry of Commerce had announced Friday that it plans to impose tariffs on 7 categories of products, the details of which has already been conveyed to US Secretary of the Treasury Steven Mnuchin. The tariffs are expected to target around $3 billion worth of American exports. The list contains a total of 128 items, out of which 120 items will be charged a tariff of 15%. The other eight items on which higher tariff of 25% is to be imposed, include aluminum waste and scrap as well.