European Aluminium, representing the entire European aluminium value chain, expresses deep concern over the

U.S. administration’s decision to double Section 232 tariff on aluminium imports from 25% to 50%. This abrupt escalation threatens to further destabilise transatlantic trade relations and disrupt long-standing supply chains between two key economic partners, while indirectly fuelling scrap outflows from Europe and adding further distortion to an already fragile trade environment.

In addition to the expected decline in exports of value-added aluminium products to the U.S., a growing and deeply concerning issue is the sharp rise in scrap outflows — driven by the fact that aluminium scrap is not subject to the same tariffs as other aluminium products. Even before the latest U.S. tariff hike, Europe was already losing scrap at record rates to regions with lower labour, energy, or environmental standards. The current tariff gap has further boosted U.S. demand for scrap, intensifying the outflow of scrap from Europe.

Without swift EU action to restrict scrap exports, the U.S. tariff increase risks triggering a full-blown scrap crisis — threatening the viability of Europe’s aluminium recycling and semi-fabrication industry. In Q1 2025 alone, exports to the U.S. surged by 273% compared to the same period last year. Alarmingly, two-thirds of the total scrap volume exported in all of 2024 was already shipped in the first three months of this year. This trend undermines the EU’s circular economy goals and exacerbates critical material shortages for European recyclers.

The scale and speed of this outflow have prompted strong political attention. Following the introduction of U.S. reciprocal tariffs, the European Commission launched a consultation on potential countermeasures. Among the options under consideration now is a possible export fee on aluminium waste and scrap (CN code 7602) destined for the U.S.

“The outflow of aluminium scrap from Europe is already alarming — and doubling U.S. tariffs will only accelerate it,” says Paul Voss, Director General of European Aluminium. “This puts our recycling industry at serious risk. The Commission must respond immediately by introducing a corresponding duty on scrap exports to the U.S. More broadly, the EU needs to introduce an export fee that applies to all destinations, not just the U.S., to stop scrap leakage and secure access to critical secondary raw materials.”

European Aluminium also warns that the risk of aluminium imports being redirected from other regions to the EU — a trend already observed for some products since the initial 25% tariff was introduced — is likely to accelerate. With the tariff doubled to 50%, more semi-fabricated products originally destined for the U.S. may flood the European market, putting further pressure on prices and harming the competitiveness of domestic producers.

“If the goal is to address unfair competition, this is the wrong target,” Paul concludes. “Rather than penalising trusted trade partners, we should be working together to tackle the real structural imbalances caused by non-market economies. What we need is coordination, not escalation.”