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Bernie Schilberg, chief executive officer of Prime Materials Recovery (PMR), told Fastmarkets that the US has for too long allowed high-value copper scrap to flow overseas, primarily to China, at prices that make it difficult for domestic consumers to compete.
“We’re not asking for protectionism. We’re calling for smart, balanced export controls that could include export licensing, improved data transparency, prioritization of domestic supply — not just a ban,” Schilberg said in an interview.
“Those are the things that ensure US recyclers still have access to global markets while protecting the interest of American industry and workers,” he added.
More than half of US-origin copper scrap is exported annually, with around 37% going to China in 2023, according to PMR’s estimates. Schilberg argued that such trade patterns, driven by what he called “predatory pricing” and “circumvention practices,” have historically undercut the US industry’s ability to invest in domestic refining capacity.
The Copper Development Association (CDA), which represents domestic producers, filed a response to the Section 232 investigation on copper with the US Department of Commerce, advocating for controls on copper scrap exports. The association’s recommendations focused on five specific Schedule B codes for recycled copper exports to be subjected to control.
US President Donald Trump said in a post on social media on Thursday July 10 that a 50% tariff would be imposed on copper imports from August 1.
“If we can’t legally impose export tariffs, we should consider targeted bans or a licensing regime for certain grades,” he said. “The long-term goal is a five-year remediation of a 40-year policy failure,” he added.
In addition to existing recyclers, a handful of wire and cable manufacturers are exploring backward integration into copper scrap processing. If policy clarity emerges, particularly around export restrictions, this interest could escalate into significant investment across the supply chain, according to him.
Schilberg is unequivocal: “If these measures are enacted, we will see real investment. Not just from us, but from strip mills, rod mills, tube mills. They’ve left the US because they couldn’t procure competitively priced raw material. This could change that,” he said.
PMR is one of the largest non-ferrous recyclers in the US, but it also plays a significant role in global trade, both exporting processed material and sourcing imports. Schilberg is uniquely positioned to see both sides of the debate — as a scrap exporter through PMR and also as a major domestic scrap consumer through its IMC subsidiary and its Ames joint venture in North Carolina.
He noted that some scrap exporters and trade groups like the Recycled Materials Association (ReMA) have expressed concern over the CDA’s proposals, arguing that restrictions would reduce revenue and hurt recyclers’ access to global markets. Schilberg rejects this argument as short-sighted.
“ReMA is thinking its members will lose sales to China,” he said. “But the long-term gain of building a resilient domestic supply chain far outweighs the short-term margin play,” he added.
He also said concerns about retaliatory tariffs, particularly from trading partners like Canada and Mexico, were unfounded. “Outside of North America, there’s little copper-related leverage against the US, and Canadian lobbying efforts have already been pushing to prevent such retaliation,” he added.
Though much of the recent debate has centered on tariffs on refined copper imports, Schilberg stressed the need for a tiered tariff structure if duties are imposed.
“In an ideal world, we’d have zero tariffs on refined metal, 25% on semi-finished products, 50% on derivatives, and export controls,” he said. “If there are no export controls, you may need something like 25% on refined, plus 50% on semis and derivatives to achieve the same result,” he said.
He believes this approach would encourage manufacturers — especially those serving data centers and critical infrastructure — to reinvest in US production. “We’re not self-serving,” he added. “It’s about giving our customers a viable ecosystem.”
One of the biggest hurdles to long-term investment, Schilberg argued, is policy uncertainty. For export controls or tariffs to spur infrastructure development, they must last longer than a single administration.
“This can’t be just an executive order,” he said. “We need legislation. A five-year buildout plan only works if the rules won’t change in four,” he told Fastmarkets.
With the global copper market in flux and demand set to soar from clean energy and AI data center growth, the stakes for the US industry are high.
“We’re giving up a material that has inherent financial and environmental advantages,” Schilberg said. “Why would we keep exporting that to our competitors?” he added.
In Hotter Commodities, special correspondent Andrea Hotter covers some of the biggest stories impacting the natural resources sector. Read more coverage on our dedicated Hotter Commodities page here.