U.S. tariffs on Chinese injection molds may resume at the end of December
Release date：2021-07-27
The US government previously suspended the 25% tariff on Chinese injection molds, but this policy appears to be reinstated later this month.
According to several company officials and sources familiar with the matter, it appears that Robert Lighthizer, a representative of the Office of United States Trade Representative, will allow the one-year tariff exemption imposed at the end of December 2018 to expire, thereby restoring tariffs.
The American Mold Builders Association (American Mold Builders Association) has launched a lobbying campaign in recent months. More than 150 mold manufacturers among its members submitted their opinions to the Office of the United States Trade Representative, urging the government to resume tariffs.
Kym Conis, executive director of the Indianapolis-based American Die and Mould Manufacturers Association, said in a statement, “For the American Die and Mould Manufacturers Association, its members, and all downstream small manufacturers that have felt the pressure from China for many years, This is an important victory. The Trump administration is doing what others have not done-confronting China. It clearly hears the voices of our members that the US mold manufacturing industry is capable and has enough expertise to satisfy Any order."
Laurie Harbour, president and chief executive officer of Harbour Results, based in Southfield, Michigan, called the decision "good news for the mold manufacturing industry."
She said, “Trade tariffs provide a more level playing field for molds purchased from China. The trade environment in 2020 is still likely to continue to be unstable. Procurement requires sufficient market intelligence and maintain business flexibility.”
In November last year, Harbour Results predicted that 50-75 mold shops in North America would be closed in the next five years, as a result of the decline in tool spending in the automotive industry.
These tariffs were first implemented in July 2018, the first round of tariffs imposed on China by Trump. But in December 2018, after many American injection molding companies and other manufacturers protested to the government that the mold tariffs would increase the cost of the U.S. plastic molding business, the tariffs were suspended for one year.
However, starting from October, the U.S. mold manufacturing industry has made more vigorous efforts to restore tariffs and informed the Office of the United States Trade Representative that the mold manufacturing industry can accept more orders. U.S. mold manufacturers have been hurt by China’s unfair trade practices. The arguments seem to shake the Trump administration.
Other U.S. manufacturing companies disagree with the position of the American Mold Manufacturers Association. Prior to this, they had urged the Office of the United States Trade Representative to continue to exempt China’s tariffs on injection molds.
Companies such as packaging manufacturer Berry Global Inc. and automotive mold maker Forteq North America said that the domestic mold manufacturing industry in the United States has insufficient production capacity, and they believe that Chinese mold suppliers, which are much larger than American manufacturers, are more price-competitive , Rising mold costs will hurt their ultimate profitability.
As the policy is still in the evaluation stage, an executive who works for a company that has always opposed tariffs said anonymously that the company’s lawyers stated that the US government has decided to let the one-year exemption expire and resume the collection of tariffs. The executive also said that due to injection mold tariffs and larger-scale trade negotiations between the Washington and Beijing governments, the company’s plans are difficult to formulate.
The executive said, "The first phase of the trade agreement with China has been completed, but what is the second phase? It is difficult to make long-term plans in this regard."
The Office of the United States Trade Representative issued a formal notice on December 18, exempting other products that are in the same formal regulatory process as mold tariffs, but this notice clearly stated that injection molds are not included, which has led to these days Speculation that mold tariffs will resume.
According to several company officials and sources familiar with the matter, it appears that Robert Lighthizer, a representative of the Office of United States Trade Representative, will allow the one-year tariff exemption imposed at the end of December 2018 to expire, thereby restoring tariffs.
The American Mold Builders Association (American Mold Builders Association) has launched a lobbying campaign in recent months. More than 150 mold manufacturers among its members submitted their opinions to the Office of the United States Trade Representative, urging the government to resume tariffs.
Kym Conis, executive director of the Indianapolis-based American Die and Mould Manufacturers Association, said in a statement, “For the American Die and Mould Manufacturers Association, its members, and all downstream small manufacturers that have felt the pressure from China for many years, This is an important victory. The Trump administration is doing what others have not done-confronting China. It clearly hears the voices of our members that the US mold manufacturing industry is capable and has enough expertise to satisfy Any order."
Laurie Harbour, president and chief executive officer of Harbour Results, based in Southfield, Michigan, called the decision "good news for the mold manufacturing industry."
She said, “Trade tariffs provide a more level playing field for molds purchased from China. The trade environment in 2020 is still likely to continue to be unstable. Procurement requires sufficient market intelligence and maintain business flexibility.”
In November last year, Harbour Results predicted that 50-75 mold shops in North America would be closed in the next five years, as a result of the decline in tool spending in the automotive industry.
These tariffs were first implemented in July 2018, the first round of tariffs imposed on China by Trump. But in December 2018, after many American injection molding companies and other manufacturers protested to the government that the mold tariffs would increase the cost of the U.S. plastic molding business, the tariffs were suspended for one year.
However, starting from October, the U.S. mold manufacturing industry has made more vigorous efforts to restore tariffs and informed the Office of the United States Trade Representative that the mold manufacturing industry can accept more orders. U.S. mold manufacturers have been hurt by China’s unfair trade practices. The arguments seem to shake the Trump administration.
Other U.S. manufacturing companies disagree with the position of the American Mold Manufacturers Association. Prior to this, they had urged the Office of the United States Trade Representative to continue to exempt China’s tariffs on injection molds.
Companies such as packaging manufacturer Berry Global Inc. and automotive mold maker Forteq North America said that the domestic mold manufacturing industry in the United States has insufficient production capacity, and they believe that Chinese mold suppliers, which are much larger than American manufacturers, are more price-competitive , Rising mold costs will hurt their ultimate profitability.
As the policy is still in the evaluation stage, an executive who works for a company that has always opposed tariffs said anonymously that the company’s lawyers stated that the US government has decided to let the one-year exemption expire and resume the collection of tariffs. The executive also said that due to injection mold tariffs and larger-scale trade negotiations between the Washington and Beijing governments, the company’s plans are difficult to formulate.
The executive said, "The first phase of the trade agreement with China has been completed, but what is the second phase? It is difficult to make long-term plans in this regard."
The Office of the United States Trade Representative issued a formal notice on December 18, exempting other products that are in the same formal regulatory process as mold tariffs, but this notice clearly stated that injection molds are not included, which has led to these days Speculation that mold tariffs will resume.
