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Open markets key to circular economy growth as India–US recycling trade remains strong

Since January 2025, a series of tariff measures introduced under different US trade authorities have pushed average rates from roughly 2% to highs nearing 30%, with current levels at about 18%. Although steel and aluminium tariffs do not directly target recycled materials, there are increasing concerns related to downstream products and recycling equipment. The recycling sector, however, thrives in an open market.


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Recycling
 
January 22 2026
 
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Despite growing uncertainty in global trade amid changing tariff structures and rising protectionist policies, recycling trade between India and the United States has shown notable stability, reinforcing the importance of open markets in advancing the circular economy, industry leaders said at the International Material Recycling Conference (IMRC 2026).

Speaking at the event, Robin Wiener, President of the Recycled Materials Association (ReMA), USA, emphasised that access to global markets remains the recycling industry’s top priority—particularly for economies such as the US that consistently produce more recycled material than they consume domestically. “The United States generates a surplus of recycled materials each year. In 2025, this excess crossed $22 billion across various commodities, making exports essential for sustaining industry investment, innovation, and long-term resilience,” Wiener said.
She highlighted India’s growing role as a key destination for US recycled material exports, noting that the country is now the third-largest trading partner by both volume and value. “Over the past year, US exports to India totalled 4.3 million metric tonnes, representing nearly 14% of total export volumes and valued at $2.3 billion—around 8% of overall export value,” she said. Tracing the evolution of bilateral trade, Wiener pointed out that the US–India recycling trade has expanded almost sixfold over the last 19 years, rising from $375 million at the time of the first industry trade mission to India. She added that the broad range of materials shipped reflects the scale and diversity of India’s manufacturing sector.

Commenting on the global tariff environment, Wiener explained that since January 2025, a series of tariff measures introduced under different US trade authorities have pushed average rates from roughly 2% to highs nearing 30%, with current levels at about 18%. “Although steel and aluminium tariffs do not directly target recycled materials, there are increasing concerns related to downstream products and recycling equipment,” she said.

Wiener welcomed India’s decision to refrain from imposing retaliatory tariffs on US recycled material imports and noted that bilateral trade discussions are expected to conclude by the end of the first quarter of 2026. “To date, tariff changes have not significantly disrupted recycled material flows between the two countries, underscoring the strength and resilience of this trade relationship,” she said.

However, she cautioned that export controls pose a more serious long-term risk than tariffs. “There have been ongoing efforts to limit exports of copper, aluminum, and nickel-bearing stainless steel. While proposed restrictions on copper were successfully resisted, discussions around aluminium and nickel remain active. Given the availability of surplus material, export curbs are unnecessary and undermine global circular economy objectives,” Wiener said.

Addressing the shifting dynamics in the Middle East, Mir Mujtaba, President of the Bureau of Middle East Recycling (BMR), said the region is undergoing a fundamental transition driven by sustainability requirements, traceability standards, and net-zero targets. “The Middle East is no longer a question mark in global recycling trade—it is becoming an explanation for cleaner, safer and more responsible trade practices,” Mujtaba said.
He noted that countries such as the UAE, Saudi Arabia, and Oman are pursuing net-zero goals between 2030 and 2050, positioning recycling as a core industrial pillar rather than a marginal activity. “Regulatory changes are designed to curb unsafe and illegal trade, strengthen compliance, secure feedstock for domestic industries, and promote value addition. This approach is not anti-trade—it supports clean and responsible trade,” he said.
Mujtaba added that closer alignment with Basel Convention guidelines has led to stricter contamination limits, compulsory end-user declarations, digitalised documentation, and risk-based inspections at ports. While these measures raise compliance costs, he said they also generate a “trust premium” for compliant operators and help attract long-term capital.
From India’s standpoint, Mujtaba said, shared policy priorities between India and the Middle East create a natural strategic alignment. 
“India contributes scale, processing capabilities, and manufacturing depth, while the Middle East offers advanced logistics, capital, and sustainability-driven policy frameworks. Together, this forms a strategic recycling corridor rather than a simple trade route,” he said.

Outlining India’s domestic policy landscape, Amar Singh, Secretary General of the Material Recycling Association of India (MRAI), said the country’s circular economy could generate more than $2 trillion in market value and close to 10 million jobs by 2050, as outlined by Union Minister Shri Bhupender Yadav. He noted that India has established an extensive policy framework covering both ferrous and non-ferrous recycling. “Policies such as the National Steel Policy, the Steel Scrap Recycling Policy, the PLI scheme for specialty steel, and the National Green Hydrogen Mission support value-added steel production and the low-carbon transition,” Singh said.

He added that initiatives, including the Green Steel Roadmap and Green Steel Taxonomy, offer clear guidance on decarbonisation, access to green finance, and global competitiveness. In the non-ferrous segment, India’s recycling roadmap is supported by instruments such as the National Non-Ferrous Scrap Recycling Policy 2020 and the Aluminium and Copper Circular Economy Vision documents.
Singh said Extended Producer Responsibility (EPR) frameworks are rapidly expanding across material streams. “EPR is already in place for e-waste, plastics, tyres, and used oil. Implementation of EPR for non-ferrous metals is expected from April 1, alongside discussions on the Battery Waste Management Rules and proposed battery passport systems,” he said.
He also pointed to ongoing challenges, including limited domestic scrap generation, heavy reliance on imports, GST-related distortions, and the dominance of informal recycling. “MRAI has consistently pushed for the free movement of scrap, resulting in reduced import duties on several metals, with further cuts, including for aluminium, anticipated,” Singh said.
Wrapping up the session, Sanjay Mehta, President of MRAI, stressed that unrestricted access to scrap is critical to achieving India’s circular economy objectives. “Zero duty on all scrap imports, especially aluminium, is inevitable. It aligns with India’s manufacturing and sustainability goals, and we expect tangible progress over the next six to twelve months,” he said.

Mehta added that MRAI is reinforcing its advocacy efforts through closer engagement with policymakers, broader leadership participation, and professional communications support. “Our priorities remain policy reform, sector formalisation and positioning recycling as a strategic industry within India,” he said.