Canadian goods compliant with the US-Mexico-Canada trade agreement (USMCA), which include ferrous scrap metal, will maintain their exemption status from proposed new US import tariffs on the country, according to a White House official.
President Donald Trump announced a 35pc tariff on all imports from Canada effective 1 August in a letter to Canadian prime minister Mark Carney yesterday.
A White House official told Argus exemptions currently covered by the USMCA will remain in place. But until the new tariff rate officially goes into effect uncertainty will likely remain a source of concern for market participants.
Canada is a major shipper of ferrous scrap metal to the US, particularly shred and #1 busheling. In 2024, the US imported an average of 230,000 metric tonnes (t)/m of ferrous scrap. US imports of Canadian ferrous scrap totaled 1mn t through May, down by 10pc from the prior year.
By Brad MacAulay and Haik Gugarats
