US Copper Scrap Tariffs Impact Exports to China
New US copper scrap tariffs now impose a 25% duty on shipments to China as of August 23. As a result, exporters face rising costs and market uncertainty. The move also highlights ongoing US-China trade tensions affecting the global metals industry.
Impact on Exporters and Industry Players
The tariffs directly affect major exporters, including the David J. Joseph Company, a subsidiary of Nucor Corporation (https://www.nucor.com). The company plays a key role in U.S. scrap exports while its parent company has supported Section 232 trade measures and wire rod tariffs.
Consequently, the policy creates a complex situation for firms operating across both domestic protection and global trade markets.
Copper Scrap Trade Volume and Market Data
According to Reuters (https://www.reuters.com), the United States exported nearly $6 billion in scrap commodities to China last year. Copper scrap accounted for 535,371 metric tons, valued at approximately $1.8 billion. Meanwhile, Hong Kong ranked as the top supplier, exporting 627,180 metric tons.
In early 2018, exporters shipped nearly 2,200 cargoes per month from the U.S. to China. Each shipment averaged about 20 metric tons. Therefore, the new tariffs could significantly disrupt established supply chains.
Escalation of Trade Measures
China did not include copper scrap in its initial draft tariff list released in June. However, officials added it to the final list covering $16 billion in U.S. goods. As a result, the decision signals a broader escalation in trade actions between the two countries.
Learn more about Nucor Corporation at https://www.nucor.com
Read the full report from Reuters at https://www.reuters.com
