Sustainability, circularity, and the impact of the tariffs initiated by the Trump administration were among the key themes discussed between OPIS and market participants at the Plastic Recycling Show in Europe (PRSE) at the beginning of April.

TotalEnergies vice president of polymers and low-carbon solutions Tom Houpeline told delegates during a panel on circularity and future roadmap for plastics at PRSE that issues may not just be the tariffs themselves, but their impact and implications that arise from their implementation, such as a shift of direction in trade flows, an influx of imports into the EU from Asia and the result of increased competition.

The introduction of the tariffs has caused both U.S. and European traders to reduce their exports of low-density polyethylene (LDPE) and high-density polyethylene (HDPE) between the two regions, as both sides deliberate how their cargoes would be subject to tariff penalties, as well as how this lack of clarity has shifted the direction of trade towards South America and Asia.

A shift in trade flows would have a knock-on effect on the type and cost of the material imported into the EU, with an influx of cheaper imports coming from Asia.

A shift in trade flows would have a knock-on effect on the type and cost of the material imported into the EU, with an influx of cheaper imports coming from Asia. Ultimately, this would increase the pressure of competition for European producers who are already obliged to sell at a higher price compared to producers in Asia, given the relatively increased costs of production, labor and feedstocks.

Meanwhile, concerns over consumer demand for recycled plastics were frequently heard, for as raw material costs track energy market prices lower, there is an increasing desire for European producers to turn towards virgin material.

TotalEnergies’ Houpeline stressed the need for advanced infrastructure within Europe, such as scaling up the size of mechanical recycling plants or building more chemical recycling plants that would optimize recycling efforts, increase efficiency, and scale up the production of recycled material in Europe. In theory, doing so would create more localized supply chains, reduce the reliance on imports, and reach mandatory targets faster.

Collaboration is also a key measure to bolster sustainability, sources told OPIS. Smaller companies typically can operate more flexibly than larger global corporations when it comes to expanding their strategies, so joining smaller businesses together would bring a sense of order and unity in the production of more innovative ideas that fall in line with EU regulation surrounding circularity.

“At the moment, the U.S. is the market recognized for its innovation, whilst the EU is recognized for its regulation and legislation,” said Houpeline. “Collaboration between companies could pave the way for Europe to become more innovative, and potentially a frontrunner for innovation on a global scale.”

The lack of uniform legislation concerning recycling within EU member states is a concern for many in the industry.

Additionally, the lack of uniform legislation concerning recycling within EU member states is also a concern for many in the industry. European member states have their own means of recycling infrastructure, and while mandatory targets can ensure efficiency, such goals can make it more difficult for European companies to compete globally with an influx of imports from outside the EU that are not subject to the same obligations.

Ultimately, this point highlights the shared sentiment that legislation should also offer greater protection for the recycling industry. This would, in turn, boost recycling and circular efforts, such as import controls or a ban on exported waste, ensuring localized production flourishes as the recycling industry moves to fulfil its legal obligations.

“We urge EU policymakers to take a fast and strong political stance, introducing effective import controls and enforcing existing legislation, including the restriction of importing materials which do not meet the equivalent EU sustainability and safety standards,” said the president of Plastic Recyclers Europe, Tom Emans.