Unpacking the Impacts of Tariffs on PET Imports: What It Means for Sustainability

The Growing Pressure on PET Imports

As the recycling industry grapples with unprecedented challenges, the Association of Plastic Recyclers (APR) has taken the lead in advocating for trade remedies aimed at stabilizing the market for polyethylene terephthalate (PET) imports. The recent fall member meeting in Salt Lake City showcased the urgent issues at hand, with APR CEO Steve Alexander acknowledging the tough reality many recyclers face: "Mandates can change overnight, cheap imports can dismantle existing contracts, and the viability of recycling itself can come under attack... You are not in this fight alone." This rallying cry underscores the vital need for a united front amid an industry crisis.

Policy Changes Affecting Recycled PET

In a seismic shift, the U.S. has imposed full tariffs on PET and recycled PET imports effective September 8, 2025. This policy change eliminates previous exemptions and aligns both virgin and recycled PET under the same hard-hitting tariff regime, emphasizing a protectionist approach to bolster domestic industries. Analysts worry these moves could further complicate supply chains and intensify price volatility. Traders from Southeast Asia now face exorbitant tariffs, and many are quickly shifting their focus to alternative markets like Europe. For the U.S. recycling industry, however, the implications are profound as prices for domestic PET have sunk to a 15-month low.

Challenges in Classifying Recycled PET

Compounding the difficulties, APR continues to push for a distinct tariff code separating recycled PET from its virgin counterpart. Currently, the U.S. lacks a clear method for accurately identifying the two, which threatens to stifle growth among recyclers. Nick Laneville of Hogan Lovells emphasizes this challenge, citing U.S. Customs' limitations: "They say they can’t distinguish between recycled and virgin resins at the chemical level." As a workaround, APR aims to conduct a breakout analysis between pelletized and flaked materials to better gauge the impact of imports from various countries.

The Path Forward: Data and Action

As APR embarks on this ambitious data collection effort, the focus is on developing clearer strategies to craft policies that support U.S.-based recycling initiatives. Regulatory failures underscore the need for comprehensive verification systems and policies that offer advantages to North American post-consumer recycled (PCR) materials. These efforts, paired with state-level extended producer responsibility (EPR) programs, could provide a robust framework that prioritizes local solutions over foreign imports.

Implications for Environmental Sustainability

The APR's emphasis on domestic recycling aligns with a growing consciousness about sustainability and environmental responsibility. With the recycling industry facing existential threats from imports and trade dynamics, these steered attempts for enhanced tariffs and classifications in PET trade may well determine the future health of the recycling industry in America. Given the strong advocacy and community push for green technologies, the actions taken in upcoming months could resonate far beyond just economic outcomes, bolstering investment in sustainable practices.

Your Role in the Recycling Revolution

The ongoing debates about tariffs and trade remedies resonate deeply with environmental advocates and everyday consumers alike. As stakeholders, your voice matters—encouraging local recycling efforts can ignite change. Awareness of how these policies create ripple effects in our economy and environment is essential as we look to support innovations in the recycling landscape. Stay informed and engaged with the recycling initiatives in your area, because every action contributes to a greener future.