In a major blow to businesses across the globe, U.S. President Donald Trump announced massive “reciprocal tariffs”, ranging from 10% to 49%, on U.S. imports from its trading partners around the world. 

The tariff regime, described by Trump as a “universal baseline tariff,” aims to set a flat 10%  import tax on all goods entering the US. However, this is just one part of a broader strategy: every country in the world would also face reciprocal tariffs from the U.S. based on how they currently tax American goods. 

Amid this backdrop, Gulf nations like the UAE and Saudi Arabia remain relatively unaffected, facing a comparatively lower 10% reciprocal U.S. tariff. 

While China would be hit with a 34% tariff, on top of the 20%, U.S. previously imposed earlier this year, bringing the total new levies to 54%. Japan is targeted with a 24% rate, South Korea with 25%, Taiwan with 32% and the European Union with 20%. The UK, Australia, New Zealand, and most of South America were let off with the minimum 10%. 

India was hit with a 26% tariff on its exports to the U.S. However, ​Indian steel and aluminium exporters are relieved as these two metals are spared from an additional 27% duty. However a 25% tariff remains in place. According to a Times of India report, while India's direct exports to the U.S. are modest, industry experts caution that secondary effects could arise if broader tariff conflicts develop. To mitigate potential impacts, the proposed 12% safeguard duty by India's Directorate General of Trade Remedies (DGTR) could offer protection to the domestic steel sector. 

Impact on recyclers 

The tariff on imports could restrict access to international markets for U.S. recyclers, particularly in exporting materials like scrap metal and paper. Such barriers may lead to an oversupply of recyclable materials domestically, depressing prices and straining the profitability of recycling operations. 

The tariffs on imported metals could increase demand for domestically sourced scrap metal, potentially boosting business for local recyclers. However, this advantage could be offset if retaliatory tariffs limit export opportunities. 

Statements from recycling organizations 

Recyclers have expressed concern over current tariff implementation and maintains call for free trade. The Recycled Materials Association (ReMA) released the following statement in response to the announcement of new import and retaliatory tariffs by President Trump:  

“The Recycled Materials Association has long supported free and fair trade policies. The imposition of new tariffs on our international trading partners will significantly disrupt U.S. manufacturing and recycling operations that depend on recycled material inputs.  

“The U.S. recycled materials industry is a net exporter and supports nearly 600,000 jobs nationwide, with the exports of recyclables helping to reduce the U.S. trade deficit. U.S. 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.  

“We look forward to continuing to work with the Administration and Congress to support the growth of American manufacturing and the broader U.S. economy, both of which benefit from a strong recycled materials industry.” 

The Bureau of International Recycling (BIR) observed with great concern the current development with regards to tariff impositions and countermeasures across the globe. This escalating pattern risks triggering a harmful cycle of trade restrictions with far-reaching consequences for global commerce and economic stability.

BIR has always advocated for free and fair trade as the foundation of a healthy global economy and a driver of productive commercial exchanges between nations. Trade barriers not only distort markets but also threaten economic growth and the efficient allocation of resources worldwide.

BIR will closely monitor the impact of these developments on international recycling markets and national economies. It highlighted the significant risks associated with protectionist measures and urged governments to refrain from policies that could hinder global trade flows.

At a time when international cooperation is more crucial than ever, BIR calls on policymakers to uphold open markets, ensuring that industries reliant on cross-border trade  – such as recycling – can continue to contribute to a more sustainable and efficient global economy.  Compiled from various reports