The European Union is preparing to introduce a 15 percent tax on exports of aluminium scrap, aiming to curb the outflow of this valuable raw material to countries such as the United States and China. The planned levy, expected to be proposed on September 9, would mark the first instance of Brussels imposing charges on goods leaving the bloc, according to sources familiar with the matter.

Aluminium producers within the EU have expressed concern about being outbid by foreign smelters, which are able to pay higher prices to purchase scrap metal in Europe. These overseas companies then process the scrap into fresh aluminium and export the finished metal back into the EU market. Producers argue that maintaining domestic metal production capabilities is critical not only for meeting demand in green technologies but also for supplying materials used in defense industries. They point to intensified global competition for raw materials, with the US and China securing mines and resource agreements worldwide.

Currently, the US levies a 50 percent tariff on finished aluminium imports but excludes scrap metal from these duties. The geopolitical disruption caused by the closure of the Strait of Hormuz has further increased demand for EU-sourced scrap. European Aluminium, the trade association representing EU producers, reported a record export level of 1.27 million tonnes of aluminium scrap in 2025, largely destined for India and China. The price per tonne of aluminium scrap has surged from €1,500 in October to €2,240, while the price of refined aluminium has risen more modestly, tightening profit margins for European producers.

Meanwhile, the circular economy and waste management sectors have voiced significant opposition to the measure. FEAD, a global lobby group for the waste industry, warned that restrictions on scrap exports could disadvantage the European recycling sector and hamper the development of a circular economy both within the EU and internationally. The group emphasized the need for a stable and robust domestic market for recycled materials to support environmental goals, economic competitiveness, and security.

In response, Paul Voss, director-general of European Aluminium, described the planned tax as a "groundbreaking measure" that reflects the European Commission’s resolve to protect the bloc’s interests amid a globally transformed resource landscape.

European Trade Commissioner Maroš Šefčovič had previously pledged to address the issue by June, although tensions between aluminium producers and scrap dealers have delayed decisive action. The European Commission has not publicly commented on the proposal.