In an environment increasingly influenced by economic policies, businesses are grappling with the ramifications of President Donald Trump’s trade wars, particularly his recent decision to double tariffs on imported aluminum and steel to 50%.
Experts warn that this move, aimed at boosting domestic production, could lead to rising costs across various sectors including automotive, construction, and consumer goods.
Among those affected is Andrew Lincoln, owner of Lincoln Recycling, a metals recycling company located in Pennsylvania. In a recent interview, Lincoln provided insights into how his business operates and the potential fallout from these tariffs.
Lincoln Recycling focuses primarily on the recycling of metals, serving a diverse customer base that includes retail and heavy manufacturing sectors.
The company operates two facilities in Pennsylvania, where it collects metals such as steel and nonferrous metals, which include aluminum, copper, stainless steel, and brass.
After collection, these metals are sorted and sent to both domestic consumers and international buyers, contributing to a complex supply chain in the recycling industry.
In light of the recent tariff announcements, some analysts suggest that businesses in the recycling sector, like Lincoln’s, may experience a short-term boost. However, Lincoln expressed a more nuanced perspective on these developments.
He acknowledged a slight increase in business but highlighted the complexities involved in the current market situation.
For example, many commodities, such as copper, are traded daily on platforms like the COMEX and LME, and while stable prices are preferred, current volatility has created challenges.
The rise in commodity prices does offer an opportunity for Lincoln to provide better returns to his customers. However, he noted a growing disparity between the market prices for copper and the actual prices he can secure for the material.
As a result, some of his customers have taken a ‘no-buy’ position, which is problematic for Lincoln as he faces incoming supplies that he cannot sell.
This situation reflects a broader trend, where the uncertainty surrounding tariffs has caused companies across the supply chain to adopt a cautious approach.
Lincoln described this collective pause, stating that everyone in the supply chain is reviewing prices and trying to determine their validity.
This hesitation is impacting economic activity, leading to a reluctance among businesses to make commitments or investments.
Consequently, Lincoln anticipates that consumers may notice an increase in costs for products such as canned goods, potentially driving up prices for everyday items like a can of green beans.
The tariffs, he argued, create an uneven playing field that favors certain businesses while disadvantaging others.
Lincoln expressed skepticism regarding President Trump’s assertion that these tariffs would revitalize U.S. manufacturing.
He believes the idea that the U.S. can manufacture all items domestically is unrealistic and underscores the importance of maintaining strong trade relationships with countries like Canada and Mexico.
In summary, while there may be some short-term benefits for the recycling industry, the broader implications of the trade tariffs appear to lead to greater uncertainty in the market.
As economic dynamics continue to evolve, businesses will need to navigate these challenges while maintaining operational viability.
This outlook illustrates the intricate interplay between trade policies and the practical realities faced by businesses like Lincoln Recycling, situated at a crossroads of domestic production and global market dependencies.
image source from:https://www.npr.org/2025/06/07/nx-s1-5424483/how-tariffs-on-aluminium-and-steel-are-impacting-a-recycling-business-in-pennsylvania