The US trade policy is shifting towards restricting the export of secondary critical raw materials, citing defence and resource security concerns, according to the recycling association ReMA. This shift is driven by the US Defense Production Act, which requires traders to seek authorization from the government to export certain materials, even if there is no domestic demand for them.
ReMA is concerned that the current restrictions on black mass and tungsten could be extended to other materials. The association’s president, Robin Wiener, and international trade vice president, Adam Schaffer, recently spoke about the issue at the Bureau of International Recycling convention in Malaga, Spain.
National Security Concerns
Adam Schaffer noted that while European recyclers accuse the EU of imposing trade restrictions disguised as environmentalism, the US is seeing trade restrictions disguised as national security concerns. He cited the Trump administration’s efforts to impose a domestic purchasing requirement for recycled tungsten and black mass as an example.
Robin Wiener emphasized that domestic purchasing requirements are a new development, and that the US government’s approach is effectively licensing. She argued that having to secure an exemption is a complex process, and that the government’s focus on Western supply chains is a policy issue, not a technical one.
Impact on the Recycling Industry
ReMA is working on a report analyzing the extent of recycled materials in defence supply chains. Adam Schaffer mentioned that the US government is considering a 25% domestic purchasing requirement for high-value copper scrap, which he noted is a significant amount given the actual copper scrap usage in defence supply chains.
The contributions came during a session held by the International Environment Council, where Alev Somer, BIR’s trade and environment director, emphasized the need for global supply chains. She argued that trade restrictions are harming the recycling industry, and that the conversation is shifting from open trade towards economic security and onshoring.
Alev Somer reviewed discussions with G7 countries and the OECD over the past three years, noting that the focus is changing from resilient and sustainable supply chains to economic security and national security. She warned that this shift is leading to a stronger emphasis on strategic dependencies and stockpiling, which could have negative consequences for the recycling industry.