US imports of aluminum scrap may be subject to a 10pc tax after President Donald Trump sought to counteract the US Supreme Court ruling today that struck down the "reciprocal" tariffs that he imposed last year.
Trump threatened to impose the trade measure on Friday, hours after the US Supreme Court ruled that he exceeded his power when implementing country-specific duties under the International Emergency Economic Powers Act (IEEPA) on 4 April 2025.
He said an executive order would come in the afternoon, but none had been posted by publication time. If he decides against levying a 10pc tariff, then aluminum scrap would return to being freely traded.
In touting the new tariffs, Trump planned to invoke Section 122 of the 1974 Trade Act, which allows for the US to impose duties of up to 15pc to address balance-of-payment issues. Those tariffs can only remain in place for 150 days, though, with Congress having sole authority to approve any extensions.
He added that he was considering taking action under sections 232, 201, 301 or 330 of the act. Section 232 tariffs on imports of P1020 and other grades of primary aluminum remain in effect at a 50pc rate, aside from imports from the UK, which are subject to a 25pc rate. Previously, goods subject to section 232 tariffs have been exempted from stacking of additional tariffs for specific countries, except for imports from China.
Still, Trump's latest tariff threat likely would benefit certain countries, while being a wash for others, as the baseline duty rate under IEEPA already was 10pc. Fewer than half of the top 15 suppliers of aluminum scrap to the US in 2025 were subject to a higher "reciprocal" tax.
The US brought in 581,000 metric tonnes (t) of aluminum scrap at a declared value of $1.53bn from May-December 2025, the latest data from the US Commerce Department shows. Still, tariff costs on consumers were minimal during that period, given that material coming from Canada and Mexico — which accounted for 89pc of shipments to the US — is largely imported duty free under the US-Mexico-Canada (USMCA) free-trade agreement.
It remains to be seen whether importers will be able to recoup tariff costs or whether aluminum scrap shipments covered by USMCA would be affected by the Section 122 tariffs, given that it was not clear by publication time if the latest legal avenue proposed by Trump would supersede that deal.
