Canadian goods that meet USMCA standards, including ferrous scrap metal, will remain exempt from new US import tariffs, according to a statement from a White House official. The clarification follows President Donald Trump’s announcement of a 35% tariff on all Canadian imports starting 1 August, addressed in a formal letter to Prime Minister Mark Carney.

While the US-Mexico-Canada Agreement secures exemptions for specific product categories, market participants remain cautious until the measure is officially implemented. The uncertainty surrounding enforcement and scope of the tariffs continues to be a concern across supply chains.

Canada plays a pivotal role in supplying ferrous scrap to the US, particularly high-grade varieties like shred and #1 busheling. In 2024, US monthly imports of ferrous scrap averaged 230,000 metric tons, with Canadian shipments totaling 1 million tons through May—a 10% decline compared to the previous year. The shift reflects evolving trade dynamics and raises questions about future cross-border flows of raw materials critical to American manufacturing.

With the looming tariff hike, stakeholders across both nations are closely monitoring developments to assess long-term trade implications, especially for industries heavily reliant on Canadian metal resources.