President Trump’s recent executive order imposing tariffs on US imports of steel and aluminum led to many questions of the full scope of materials subject to the 25% import tariff. A recent analysis by the Recycled Materials Association (“ReMA”) determined that recycled steel and aluminum – or scrap – are not subject to the tariffs soon to go into effect.
From 2019 to 2023, the US imported roughly 23 million tons of iron and steel scrap, the majority coming from Canada and Mexico. During the same time period, the US imported roughly 3.2 million metric tons of scrap aluminum, primarily from Canada.
Steel and aluminum materials are used in a wide variety of construction applications, from structural framing on industrial plants to door handles in homes. Once the tariffs go into effect on March 12, recycled steel and aluminum material will be an attractive option to construction companies looking to avoid potential material delays and price escalations. Demand for aluminum in the construction industry is expected to increase steadily over the next few years, and it is important to remain acutely aware of ways to ensure timely and cost-efficient completion of construction projects.
Contact the team at Gray Reed to better understand how to protect yourself from uncertainty on a project.