Tariffs reduce competitiveness, says ReMA

American recyclers are concerned that international retaliation to wide-ranging tariffs imposed by the US administration on 2 April will significantly disrupt domestic manufacturing and recycling operations that depend on recycled materials.

The comment comes from the US Recycled Materials Association (ReMA) which backs free and fair-trade policies. In a briefing for members, it points out the US recycled materials industry is a net exporter and supports nearly 600 000 jobs nationwide, with the exports of recyclables helping to reduce the US trade deficit.

Two tariff types

‘US recyclers rely on international market access to support their workforce and these new tariffs, and any retaliatory measures they may provoke, will only reduce the competitiveness of our industry and the manufacturers that rely on recycled materials,’ ReMA comments.
‘We look forward to continuing to work with the administration and Congress to support the growth of American manufacturing and broader US economy, both of which benefit from a strong recycled materials industry.’

ReMA has also issued a summary of how tariffs are likely to affect recyclers. Overall, there are two types of tariffs: a universal 10% rate for almost all US imports taking effect from 5 April and variable reciprocal tariffs on nearly 60 trading partners from 9 April.
The universal tariff rate will apply to recycled material imports into the US market – apart from those from Mexico and Canada. There are certain exemptions from the reciprocal tariff rates, including goods already subject to Section 232 tariffs such as steel and aluminium.

Retaliation

ReMA’s briefing says it is not yet clear whether the universal tariff will ‘stack’ on top for countries that receive reciprocal tariffs but also receive exemptions – such as steel or aluminium from the EU.

At the time of the briefing, no government had formally announced retaliatory tariffs. Canada has included recycled materials in a list of tariffs that it intends to retaliate against. The European Union has also released its proposed retaliation but it does not currently include US exports of recycled or recyclable products.