Tariff War Updates: How They’re Shaking Up the Scrap Industry

April 9th, 2025

The trade landscape shifted yet again this week, and the ripple effects are already being felt across the scrap industry—especially in the aluminum market.

Just yesterday, April 8th, new tariff announcements sent shockwaves through the commodities world. Aluminum prices reacted quickly, with the LME dropping by three cents and the Midwest Premium slipping by $0.0055/lb. This morning, the downward trend continued, as LME Aluminum dropped another penny in anticipation of President Trump’s latest announcement.

What’s New in Tariff Talk?

Today, President Donald Trump declared a 90-day pause on reciprocal tariffs for dozens of countries that haven’t retaliated against the U.S., offering a temporary breather. During this pause, tariffs for these countries will be reduced to 10%, effective immediately.

But the real headline is aimed at China. Trump is ramping up pressure, citing China’s refusal to negotiate and “lack of respect” toward global markets. As of today, tariffs on Chinese goods have been raised to a staggering 125%.

“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump posted on social media.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.”

Stock markets, predictably, are reacting negatively to the uncertainty, dipping alongside commodity prices. However, we did see a slight jump in the stock market, reacting positively to the tariff pause.

What This Means for the Scrap Industry

For those in the scrap metal trade, especially aluminum, these developments raise new questions and provide some clarity.

Fortunately, scrap aluminum remains exempt from tariffs when traded between the U.S., Canada, and Mexico under the USMCA agreement. However, there are some important updates and compliance steps to keep in mind:

• HTS Codes Matter: Use the correct Harmonized Tariff Schedule codes for your metal.

• USMCA Certificate of Origin: Ensure this is filed properly to maintain duty-free status.

• New Filing Requirements: For aluminum, you’ll now need to include the 232 line number—a recent addition tied to tariff tracking.

• Dual Line Items: You must now file two line items per scrap commodity, instead of the previous single line.

  
  

Market Outlook: A Rebound in Progress?

Currently, we’re seeing a modest rise in the aluminum market, signaling a potential rebound. This upward movement may be a response to temporary clarity around tariff policy or speculative activity following the U.S. announcement.

At Labrador Recycling, we’re cautiously optimistic and predict the aluminum market will continue trending upward tomorrow. That said, volatility remains high, and we’ll be watching closely to see how global players—especially China—react in the coming days.

We’re Here to Help

At Labrador Recycling, we know how complex tariff regulations and customs documentation can be—especially in a fast-changing global trade environment. That’s why we offer consulting services to help ensure your shipments stay compliant, efficient, and duty-free whenever possible.

Whether you have questions about HTS codes, USMCA certificates, or new 232 line item filings, our team is here to provide expert guidance and up-to-date knowledge.

Final Thoughts

While the 125% tariff on China doesn’t directly affect North American scrap trade, the overall uncertainty in the global market—and its effect on prices—can’t be ignored. Staying informed, compliant, and adaptable is key as these policy shifts continue to unfold.

We’ll monitor the situation and provide updates as needed. For now, make sure your paperwork is in order, and contact Labrador Recycling if you need assistance navigating these changes or want a second opinion on market direction.

Information, Research, Market Updates, and quality of service provided by Wes Foster, Sr Business Development Manager.