MISSOULA, MT — The ripple effects of President Donald Trump’s tariffs, announced on April 2, continue to reverberate through industries across the nation, and Missoula is no exception. Axmen Recycling, a local business at the heart of Missoula’s scrap metal industry, is grappling with the unpredictable market fluctuations caused by these new trade policies.
Guy Hanson, owner of Axmen Recycling, acknowledged the growing uncertainty. “The only thing I know for sure is that we’re going to keep on moving forward. Scrap still has to be recycled, and it will be recycled,” Hanson said. Despite the turbulence, Hanson remains hopeful that the business will endure, emphasizing that recycling is an essential service that will continue regardless of market conditions.
The volatility in the recycling sector stems from tariffs that have placed significant strain on the scrap metal markets. Hanson explained that while many of the tariffs are currently on hold, the unpredictability has made it difficult for businesses to plan effectively. He recalled receiving emails from buyers who have reported a lack of markets for scrap materials due to the latest round of tariffs.
Axmen Recycling, like many others in the industry, has seen major fluctuations in metal prices. Hanson pointed to the steel market as a prime example. “The price of steel has dropped 20% since the tariffs were first announced,” he said, highlighting a stark contrast to the more stable pricing seen in previous years. “For many years, the price of steel might go up $10 a month or go down $10 a month, but it didn’t fluctuate wildly like it is now.”
The tariffs have created an environment where prices are swinging dramatically, making it difficult for businesses to forecast future costs. These fluctuations have left many in the recycling business scrambling to adapt, with Hanson noting that this uncertainty is particularly challenging for smaller operations.
Despite the current challenges, Hanson is no stranger to market disruptions. He pointed to a similar crisis that occurred in 2017 when China implemented strict regulations on imported recyclables. The country shut off much of the global flow of recyclables, citing concerns about contamination and the quality of materials being shipped. This move sent shockwaves through the international recycling industry, forcing businesses to reassess the quality of the materials they were processing.
“China had a major initiative to stop the import of materials that were too contaminated, and they set new standards for what they would accept. It changed a lot of what we do in the industry,” Hanson explained. He remains optimistic that, like the situation in 2017, the market will eventually stabilize once the impact of the tariffs has been fully absorbed.
Nevertheless, the uncertainty surrounding the tariffs and their potential long-term effects continues to pose challenges for businesses in Missoula and beyond. While Hanson is confident that Axmen Recycling will continue to operate, the broader recycling industry remains in a state of flux, uncertain of what the future holds in the wake of these sweeping trade changes.
For now, Hanson and others in the industry are left to navigate the turbulent waters of a shifting global market, holding out hope that, just like in 2017, a new equilibrium will eventually emerge.
