Friday, June 15, the Trump administration announced a final list of products from China that would be assessed a 25 percent import duty. While several equipment parts used in recycling operations were included on a list of targets earlier this year, the Washington-based Institute of Scrap Recycling Industries (ISRI) says these items were removed after pressure from the association.
“We are in the midst of global uncertainty when it comes to trade policies impacting the recycling industry,” says Robin Wiener, president of ISRI. “One thing that is certain, however, is that as the Voice of the Recycling Industry,” Wiener continues, referring to the association's tagline, “ISRI is working diligently to fight for its members and protect the industry’s interests domestically and abroad. As policy changes continue to develop at a very fast pace, ISRI remains vigilant in advocating for recyclers and keeping members up to date on the most recent trade developments.”
In comments to the Office of the U.S. Trade Representatives in May 2018, ISRI wrote:
“To process what amounts to an average 365,000 million metric tons of material per day can cause wear and tear on the machines and their parts. In some cases, such as in auto shredding operations, shredder parts must be replaced daily. For most companies, especially small and medium enterprises, such equipment turnover makes up a large percentage of their operating costs.
“The vast majority of these parts—up 85 percent for crushing and grind parts, for example—are supplied from China. Adding a 25 percent import tariff on these parts would irreparably harm the competiveness of the U.S. recycling industry and risk recycling and manufacturing jobs due to lower output and thus, few inputs to metal production and fewer exports of recyclable materials.
“Furthermore, magnets are required by mixed metal processors, including auto shredders, to separate ferrous and nonferrous metals. … Such a simple piece of equipment means that greater volumes of these materials are recoverable and directed toward the appropriate metal production units. Unfortunately, as magnets are made from rare earth elements, the vast majority of which [are] mined in China, the recycling industry is dependent on Chinese sources for the majority of the magnets required in recycling operations.”
ISRI says the products that did not have tariffs imposed but were included on the original list include:
- 84798955 … Electromechanical appliances with self-contained electric motor, trash compactors;
- 84798965 … Electromechanical appliances with self-contained electric motor, nesoi;
- 84799045 … Parts of trash compactors, frame assemblies;
- 84799055 … Parts of trash compactors, ram assemblies;
- 84799065 … Parts of trash compactors, container assemblies;
- 84799075 … Parts of trash compactors, cabinets or cases; and
- 84799085 … Parts of trash compactors, nesoi.
The following products will face 25 percent import duties beginning July 6:
- 84749000 … Parts for the machinery of heading 8474;
- 85051910 … Flexible permanent magnets, other than of metal; and
- 85052000 … Electromagnetic couplings, clutches and brakes.
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