Tariffs on PET Resin Underscore the Urgent Need for Domestic Recycling Solutions

Recent changes to trade policy have expanded tariffs to include polyethylene terephthalate (PET) resin—the plastic used to make water and soda bottles—adding another layer of uncertainty to an already volatile global marketplace. Both virgin and recycled PET (rPET) are now subject to the new tariff rules, raising concerns for beverage brands, manufacturers, and recyclers alike.

For U.S. consumers, that means more price pressure. PET resin is the backbone of our beverage container supply chain, and tariffs on imports are likely to ripple through the marketplace in the form of higher packaging costs and, ultimately, higher prices at the grocery store. Yet as international trade alliances shift and the cost of imported resin grows more unpredictable, one point becomes clear: America must strengthen its domestic sourcing of recycled materials.

Steve Alexander, president of the Association of Plastic Recyclers, summed it up well: “U.S. PET recyclers are under heavy pressure from a surge of low-cost imported material and an oversupply of virgin plastic—pressures compounded by brands abandoning recycled content commitments in favor of virgin plastic and choosing imported rPET rather than sourcing from domestic recyclers.” His statement highlights the double bind: even as brands claim to support sustainability, they often pivot back to cheaper imports when markets tighten. That creates instability not only for U.S. recyclers but for consumers and communities that bear the environmental cost of discarded plastics.

Domestic solutions exist. By improving our collection rates—especially through proven refund-based recycling systems for beverage containers—we can turn what is currently waste into reliable feedstock for U.S. manufacturers. Today, billions of PET bottles are landfilled or littered every year, despite being highly recyclable and in demand. Each one represents lost economic value, lost manufacturing potential, and a lost chance to clean up our communities and waterways.

The timing is especially important for Texas. Our state has some of the lowest PET bottle recycling rates in the nation, despite having the largest population in the continental U.S. Every bottle that washes down a storm drain in Houston or floats into the Gulf is a reminder that we are throwing away material that could instead be fueling domestic jobs and manufacturing growth. With tariffs pushing resin costs higher, why should we continue to depend on unpredictable imports when we could build a reliable, homegrown supply right here?

Trade disputes and market swings will always be part of the global economy. The smarter path forward is to insulate ourselves from that instability by investing in policies that keep valuable materials in circulation at home. Deposit-return systems are a proven, market-driven way to reduce litter, provide manufacturers with steady recycled feedstock, and strengthen supply chains. In times of uncertainty, that kind of domestic resiliency isn’t just good environmental policy, it is also good economic policy.