Page 52 - Plastics News Issue September2025
P. 52
INTERNATIONAL NEWS
ADAPTING AHEAD: U.S. PLASTICS MACHINERY
FACES NEW TARIFF DYNAMICS
he Bureau of Industry and Security (BIS) While the intent is to put U.S. manufacturing into
within the U.S. Department of Commerce higher gear, tariff-driven shifts in trade policy will
Thas significantly expanded the scope of continue to have uneven effects. It is a plus for
Section 232 steel and aluminum tariffs by adding U.S. plastics manufacturing. However, U.S. man-
407 Harmonized Tariff Schedule (HTS) codes to ufacturing relies on both domestic and imported
the derivative products list. This expansion now components, reflecting the sector’s evolution
encompasses a wide range of goods across over decades.
consumer, household, industrial, transportation,
chemical, energy, and infrastructure sectors—all Dependence on Imported Plastics Equipment
of which intersect with the plastics industry val- The U.S. plastics industry leans heavily on im-
ue chain.
ported equipment—especially injection molding
A Dual-Tariff Structure Complicates Imports machines that have not been produced domes-
tically in years. According to 2023 data, imports
Under the updated policy, the steel and alu- accounted for 74.5% of domestic shipments,
minum content of these products will be subject while exports were just 28.9%. This reliance is not
to a 50% tariff, while the non-steel and non-alu- a weakness, but a reflection of reality: essential
minum components will face reciprocal tariffs. machinery simply is no longer manufactured in
This dual-structure approach introduces sub- the U.S. anymore. For plastics processors mak-
stantial complexity for importers when reporting ing everything from bottle caps to car parts, ac-
entries to U.S. Customs and Border Protection cess to this equipment is mission-critical.
(CBP).
National Security Rationale and Plastics’ Role
Notably, there is no in-transit exception, mean-
ing the tariffs apply immediately to products The rationale for Section 232 tariffs rests on
entered for consumption on or after August 18, national security. Plastics play a role here too—
2025. The timing has sparked concern within federal defense spending on plastics reached
the plastics industry, particularly among equip- $5.7 billion last year. Many derivative products
ment suppliers, who were caught off guard by are also plastics end markets. For example,
the inclusion of certain HTS codes. BIS published dairy and shampoo products on the tariff list
the Federal Register notice on August 15, 2025, use plastics packaging. Manufacturing them do-
leaving virtually no advance notice before imple- mestically could increase demand for U.S.-made
mentation. plastics packaging—a positive outcome for the
industry. The plastics industry has evolved over
Plastics-Related HTS Codes Added the years, leveraging automation and technol-
ogy both from the U.S. and abroad. The future
A total of 18 HTS codes pertinent to the plastics of U.S. manufacturing will continue to be driven
industry were added from Chapters 84 and 39. In by ever-changing technology and innovation.
addition to equipment (primarily injection mold- Continued access to equipment without prohibi-
ing), parts, and auxiliaries, two HTS codes cover tive tariff costs is essential to guaranteeing this
molds (84807180, 84807990) and two cover trajectory.
plastic products (39252000 and 39269010). Source - www.plasticsindustry.org
52 PLASTICS NEWS September 2025
