With the arrival of tariffs on imported aluminum, the reality is that America does not have domestic production sufficient to meet the raw material demands of multiple industries. However, this challenge presents a golden opportunity for Texas and the rest of the country to emerge as a leader in America’s recycling renaissance.
By embracing market-driven deposit recycling systems, the U.S. can strengthen domestic manufacturing, create new jobs, and reduce reliance on foreign materials—all while keeping the government out of the way.
According to the Aluminum Association, the U.S. lacks the necessary smelting capacity to meet its growing aluminum demand, importing nearly half of its supply. Similarly, about a quarter of steel used in the U.S. comes from foreign sources. The latest round of tariffs has increased aluminum import duties from 10% to 25%. While these tariffs aim to bolster American industry, they will also create supply chain bottlenecks, further exposing the urgency of maximizing our existing domestic resources.
Texas and other industrial powerhouses should seize this moment to revolutionize material recovery through free-market recycling systems. Texas is home to some of the largest manufacturing hubs in the country, from Houston’s energy corridor to Dallas-Fort Worth’s industrial sector.
However, Texas holds the unfortunate distinction of throwing out more aluminum cans than any state in the nation. This means that hundreds of millions of dollars’ worth of high-quality, infinitely recyclable aluminum are wasted every year—materials that could be reinvested into Texas’ economy rather than discarded in landfills or littered on roadways
The aluminum and can manufacturing industry have long advocated for improving U.S. aluminum recycling rates as the most cost-effective way to reduce reliance on imports. Currently, the U.S. loses valuable materials to landfills when they could be recaptured and reinvested into the domestic supply chain. A well-designed, industry-led deposit return system—without government overreach—would ensure that recyclable materials stay within the U.S. economy rather than being discarded or shipped overseas.
The benefits of this approach extend well beyond reducing import reliance. By increasing metal recovery rates, Texas can drive new job creation in recycling, logistics, and advanced manufacturing. From urban processing plants to rural collection centers, a robust deposit system would create thousands of jobs while also reducing raw material costs for businesses.
At the same time, a cleaner Texas means a stronger economy. States with deposit programs have seen up to 83% reductions in beverage container litter, easing the burden on municipal stormwater systems and improving public spaces. For Texas, which boasts a thriving outdoor recreation and tourism industry, this is a win-win for business and the environment.
Unlike traditional recycling mandates, this system would not require new government programs or taxpayer dollars. Instead, it would be driven by private enterprise, ensuring efficiency and innovation while keeping costs low. Texas has always thrived by championing free markets, limited government, and economic independence—values that align perfectly with an industry-led deposit system.
With the administration’s decision to raise tariffs making it clear that America must take control of its material supply chains, Texas has the chance to lead the charge in sustainable manufacturing, create high-paying jobs, and strengthen its economic future. But to do so, it must first address its abysmal aluminum recycling rate.
The good news is that the Texas Legislature is considering a measure that would do just that in House Bill 2048 and Senate Bill 728. Texas businesses and policymakers should embrace this opportunity to get government out of the way of the market for recyclable materials and support an industry-led strategy for economic resilience. By doing so, Texas can thrive in this new era—turning economic challenges into opportunities and ensuring America’s manufacturing future is built right here at home.
Joe Trotter is the Director of Texans for Clean Water, a statewide nonprofit organization that organizes business leaders, industries, and other organizations to prevent and remove waterborne litter in Texas.
