• Ferrous Beat

Section 301 Tariffs on Chinese Goods: Exclusion Request for Auto Shredder Wear Parts and Others to Come

As you know, the Trump Administration is seeking to address concerns with China’s trade practices by using tariffs to shrink China’s access to the U.S. market. Although raising costs on consumers could have the effect of decreased market share, in the end, it is the businesses importing the products that are billed by U.S. Customs and Border Protection to pay the tariffs, and that is having an impact on recyclers, too.

On July 6, the Trump Administration’s 25 percent import duties on $34 billion worth of Chinese imports – including auto shredder wear parts – went into effect. The tariffs are being felt by shredders across the country, and for that reason, ISRI is preparing to submit a request to the U.S. Government that these parts be excluded from the tariffs.

ISRI staff discussed this initiative with the Ferrous Division during the Summer governance meetings. We are working closely with ISRI’s shredder and parts supplier members to gather as much data as possible on the industry’s sourcing of these parts from China so as to build a convincing case for the exclusion. But any information regarding the impact that these tariffs could have on ferrous scrap recyclers more generally would be extremely welcome.

More is to come. It is anticipated that 25 percent tariffs will be imposed on an additional $16 billion worth of imports from China (though with little effect on the recycling industry), and the Administration proposed 10 percent tariffs on $200 billion worth of Chinese goods. ISRI is analyzing this last list for any impact on the industry. Interestingly, the list includes all scrap commodities as well as some parts and equipment that may be of import to the industry. The list of affected equipment and parts can be reviewed here, and if you have any concerns about the imposition of a 10 percent duty on any of these products, please reach out to Adina Renee Adler

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