Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
    • 2022 Women Breaking the Mold
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Government - Legal
December 06, 2019 04:27 PM

AMBA files formal request to bring back tariffs on Chinese molds

Bill Bregar
Plastics News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    WASHINGTON—The American Mold Builders Association filed formal comments with the Office of the U.S. Trade Representative on Nov. 29, asking it to bring back the 25 percent tariff on Chinese injection molds.

    AMBA also asked USTR to reject a proposal to extend the exclusion for another year.

    Importers and manufacturers had until Nov. 30 to register their support or opposition for extending the suspension the 25 percent China mold tariff or reinstating the levy.

    AMBA said that more than 150 U.S. mold builders have filed comments opposing an extension of the tariff suspension and demonstrating that sufficient production capacity exists in the United States to meet the demand from importers.

    On Dec. 28 last year, the U.S. government unexpectedly put a hold on the tariff on Chinese molds, which had been enacted in mid-2018 as part of the first round of $34 billion in duties on Chinese imports. The government suspended the tariff after hearing from processors, including some big automotive molders, who argued that the 25 percent tariffs would be difficult for them to absorb, causing major problems in their already price-sensitive markets.

    The mold tariff was suspended for at least one year, but it can be extended beyond that period.

    Some of the plastics processors said higher mold costs that would result from the 25 percent tariff would make their U.S. manufacturing operations less competitive and would cause job losses. The processors also had claimed the U.S. mold sector does not have enough capacity and lead times were being stretched out for U.S.-made molds. China could make molds quicker, the processors claimed.

    "AMBA members report they have the capacity, capabilities and willingness to meet current and future mold building demand," said Kym Conis, AMBA managing director, wrote in a letter to U.S. Trade Representative Robert Lighthizer.

    The letter follows AMBA's announcement Nov. 7 that it hired a Washington lobbying group, The Franklin Partnership, to push its case to the White House, Congress and policy makers. AMBA is giving out more details about the industry as it tries to bring back the China mold tariffs.

    To counter the lack-of-supply argument presented by some importers, AMBA demonstrated to the government that the U.S. has 1,439 mold building establishments and has nearly $500 million in open mold building capacity.

    "Mold capacity utilization rate in the U.S. is currently around 75 percent, putting American companies in a strong position to meet current and future domestic demands," Conis said.

    Those mold makers, with more than $6.4 billion in annual sales, employ 35,000 Americans earning an average annual salary of $56,203, the Indianapolis-based trade association said

    AMBA said U.S. mold makers can match China delivery times while exceeding quality. U.S. molds also are critical to national and economic security, AMBA argued.

    "We believe the sheer number of mold manufacturing establishments in the U.S. clearly counters any arguments made by those requesting an exclusion extension that no domestic alternative to Chinese mold imports exist," Conis said.

    Another point made by Conis: Molds also are available from other countries, with Canada as the largest importer.

    The formal submission to the trade office mentioned a survey by Harbour Results, Inc. that showed that 60 percent of mold builders reported losing more business in 2019 to low-cost countries compared to previous years.

    Conis said AMBA understands the challenges seeking reforms in China "and applaud USTR for working to address these issues long overlooked by previous administrations," Conis said in the letter. "However, we remain concerned too many (import exclusion) requesters are using price as their primary motivation for requesting a 301 tariff exclusion extension and have not made significant efforts to identify U.S. or third-country alternatives, which are readily available."

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Continental changing Conti, General brands' taglines
    2
    Auto suppliers are asking for contract relief
    3
    Trelleborg to add biopharma capacity in Massachusetts
    4
    Bridgestone to invest nearly $27 million in NR sustainability
    5
    EVs not far from achieving cost parity
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
        • 2022 Women Breaking the Mold
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION