Global aluminium businesses have been ramping up efforts in the recycling vertical with mounting demand and resource constraints. However, during the ongoing calendar year, the green initiatives have come under pressure with geopolitics playing a major role in the ruptured system.
Image source: IAI
Of course, global developments are throwing a wrench into the industry’s momentum. Or else, why would companies like Coca-Cola decide to move away from its aluminium can packaging to pet bottle packaging?
In February 2025, the US slapped a 25 per cent tariff on all aluminium imports, citing global overcapacity. Though the tariffs were briefly paused, they came roaring back and bigger. As of March 12, 2025, a blanket 25 per cent tariff now hits all aluminium imports, including derivative products, from every country. President Trump’s 90-day suspension announced in April 2025 didn’t touch aluminium, steel, or automobiles — those tariffs are still standing firm.
The move has already rattled transatlantic trade, hiking costs for U.S. importers and European exporters alike, while doing little to fix the oversupply problem. The European Commission pushed back hard, initially threatening retaliatory tariffs. But after Trump’s 90-day pause, the EU agreed to hold off, for now, to leave room for negotiations. Elsewhere, Canada and China weren’t as patient, rolling out their own retaliatory measures.
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