ReMA lobbies for shredder wear parts tariff exclusion

The Office of the U.S. Trade Representative (USTR) has extended an exclusion on Section 301 tariffs that could be applied to auto shredder wear parts such as hammers.

The extension is for three months and applies to nearly 180 products used in shredding plants that could be included in an existing Section 301 tariff action.

Section 301 actions are designed to remedy targeted foreign trade practices.

The applicable Section 301 tariff on Chinese imports places a 25 percent duty on imports of the components from China, but the exclusion will delay that outcome until at least Nov. 30.

“ReMA continues to urge the Trump administration to permanently exclude shredder wear parts and other components, equipment and machinery from any of the tariff programs, including the Section 301 duties from China,” says Adam Shaffer, vice president of international trade and global affairs at the Washington-based Recycled Materials Association (ReMA).

ReMA has long contended there are few or no available domestic options to source several auto shredding components and wear parts.

“Since many crucial pieces of equipment and components for recycling operations nationwide are not available for purchase from domestic manufacturers, these increased costs associated with import tariffs on these products will adversely impact the competitiveness of the U.S. recycled materials industry,” Shaffer says.

In addition to the proposed 25 percent Section 301 tariff, as of last month the same components are subject to a 50 percent Section 232 (national security) tariff when they are imported. Shaffer says ReMA also is seeking an exclusion in that case.

“Our strategy has been to demonstrate how essential recyclers are to manufacturing supply chains and U.S. national security, including the domestic steel and aluminum sectors,” he says. “While we are pleased that the USTR has once again extended this exclusion for an additional three months, we are very concerned about the potential impact on recyclers of the expansion of the Section 232 steel derivatives to include shredder wear parts.”