Published by:David Bartle<>
11 Jun 2025 @ 20:24 UTC

Following US President Donald Trump’s decision to increase Section 232 tariffs on aluminium imports from 25% to 50%, European aluminium leaders have expressed concerns for the European scrap market. Unlike primary aluminium, aluminium scrap is not subject to Section 232 tariffs. European Aluminium – a Brussels-based trade association – said Europe-sourced aluminium scrap is subject to a 10% duty in a June 4 release.
Rob van Gils, chief executive officer of Hammerer Aluminium Industries (HAI), voiced concern about a large outflow of aluminium scrap from Europe to the US in a social media post on Friday June 6.
The CEO said a heavy flow of scrap to the US would jeopardize sustainability goals, as scrap can be offset by overseas primary aluminium, which has a higher carbon footprint. HAI is an Austrian-based company that casts, extrudes and processes aluminium.
The tariff hike, which took effect on Wednesday June 4, caused Fastmarkets’ daily assessment of thealuminium P1020A premium, ddp Midwest US to hit an all-time high at 68-70 cents per lb on Thursday June 5. Additionally, market participants at Harbor’s 17th Aluminium Summit reported declining physical inventories for primary aluminium.
The most pressing issue here is the scrap outflow from Europe that is already taking place, van Gils said.
Before the latest US tariff hike, scrap material was flowing out of Europe at record rates to regions with lower labor, energy or environmental standards, European Aluminium said in its release.
The association expects the tariff gap to further boost US demand for scrap and intensify the outflow from Europe, which it says will threaten Europe’s aluminium recycling and semi-fabrication industry.
In the first quarter of 2025, European Aluminium said European exports to the US increased by 273% compared with the same period in 2024. Two-thirds of the total scrap volume exported in 2024 was already shipped in the first quarter of 2025, the association said.
According to van Gils, the European Commission is not paying the necessary attention to the aluminium industry and urged the Commission to quickly control scrap exports to the US.
“The secondary effects [of the tariff increase] are massive and a real threat to the European aluminium industry, van Gils said.
In his post, van Gils said he found that the US aluminium industry broadly stands behind Trump’s trade policy — including the tariffs. Additionally, he wrote the US has a national security agenda for the light metal. Regardless of the tariff dispute outcome between the US and the EU, van Gils said he anticipates permanent Section 232 tariffs on aluminium imports.
The US administration’s [tariff increase] announcement […] is an unfavorable escalation that threatens free trade, drives up prices for American consumers and creates uncertainty in international business relations, Mauritz Faenger-Montag, head of external affairs for Germany-based aluminium roller and recycler Speira, said in a social media post on Friday, following Harbor’s conference.
Due to its diversified market positioning, Faenger-Montag said the tariff increase impact on Speira will be limited.
We are concerned about the possible leakage of aluminium scrap — our essential recycling input — from the EU, as the increased price level in the US could reinforce this trend, Faenger-Montag said.
An aluminium recycling market participant told Fastmarkets on Wednesday June 11 that scrap inflow is not limited to Europe.
Scrap should flow more into the US, and especially Mexican [scrap], the participant said.
This is because there is a big arbitrage on prime, with 50% duty, versus scrap, with 0% from Mexico or 10% duty from other countries, and this could change a bit based on country-specific reciprocal tariffs development, they said.