Dive Brief:
- Industry groups are calling on the Commerce Department to reconsider its investigation into robotics and industrial machinery imports, saying tariffs on these goods could slow President Donald Trump’s goal to revitalize U.S. manufacturing.
- In response to the agency’s efforts, the National Association of Manufacturers President and CEO Jay Timmons said in a statement that more tariffs would “significantly increase costs” on equipment and machinery on factory floors and, in turn, “stall investment” in U.S. plants and equipment.
- More than half of U.S. imports are manufacturing inputs, including machinery essential for making things in America, according to NAM’s website. A significant amount of those imports cannot be produced domestically, Timmons said.
Dive Insight:
On Sept. 2, the Commerce Department opened its Section 232 investigation to determine the national security impact of importing robotics and industrial machinery, such as computer-controlled mechanical systems, metalworking equipment and laser and water-cutting tools. The agency published details of its investigation on Sept. 26. Drones are not included in the mix.
One of the main issues that NAM has with the agency’s probe is how tariffs on robotics and industrial machinery would hamper domestic production. At most, the United States can produce 84% of the inputs manufacturers need to build, upgrade and operate their factories for optimal output, Timmons said.
“That means that, at an absolute minimum, 16% of critical manufacturing inputs must be imported to manufacture more here in the U.S.,” Timmons said in a statement.
NAM, which represents about 14,000 small and large manufacturing companies, has pushed for the Trump administration to adopt trade solutions such as “zero-for-zero” tariffs with trading partners and rebates for companies investing in the U.S. It has also urged negotiators “not to put tariffs on specific manufacturing inputs we need to make things in America.”
The Plastics Industry Association echoed NAM’s sentiments in an emailed statement, saying more tariffs could impose “steep costs” on the machinery essential to producing automotive parts, semiconductors, packaging, aerospace and construction materials.
They also run the risk of “slowing investment, threatening jobs, and undermining the broader goal of a strong American manufacturing resurgence,” the PIA said in a statement.
The Trump administration has heavily leveraged Section 232 of the Trade Expansion Act to impose import restrictions, notably tariffs, on goods that it says threaten the national security of the United States. Since March, the Commerce Department has opened a dozen investigations into imports ranging from copper and semiconductors to commercial aircraft and pharmaceuticals.
In addition to the robotics and industrial machinery investigation, the agency also recently opened a Section 232 probe into imported medical equipment, devices and supplies.
The public can submit comments about both investigations through an online portal until Oct. 17.
