The Impacts of Trump’s Tariffs on Recycled Plastic Markets

Meanwhile, recycled PE and PP imports are still subject to tariffs, the rates of which vary depending on the country of origin.

SEATTLE (Scrap Monster): Plastic recyclers are among the industry participants who are seen anticipating the impact of President Donald Trump's tariffs on both domestic and international markets. It is feared that the frequent adjustments in tariffs will have an impact on the world's commodity markets.

Since rPET is deemed consistent with the USMCA trade deal, it will not be subject to the most recent round of 25% tariffs when imported from Mexico and Canada. For recyclers, this is a huge relief because the price of feedstock and final resin would have been significantly impacted by possible rPET taxes.

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Imports of recycled PE and PP are nevertheless liable to tariffs, the exact amount of which varies according on the nation of origin. For example, Thailand imposes a 46% tariff on imported recycled natural HDPE pellets. The UK and Australia are the other importers of recycled HDPE. US PE exporters may be impacted by retaliatory tariffs imposed by nations like China and the EU.

Recycling organizations predict that tariffs will negatively impact the demand for goods created from recycled materials. They claimed that U.S. manufacturing and recycling companies that rely on inputs made from recycled materials will be negatively impacted by the tariffs placed on foreign trading partners.

Since there won't be enough recycled plastics available domestically to meet demand, the nation will have to rely on imports.

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