New tariffs will have a disruptive impact on imports of plastics machinery, warns Perc Pineda, chief economist for the Plastics Industry Association (PLASTICS).
In an analysis on PLASTICS’ website, published Aug. 27, Pineda discussed the expanded scope of Section 232 steel and aluminum tariffs, which now encompass a wide range of goods that intersect with the plastics industry value chain.
“Under the updated policy, the steel and aluminum content of these products will be subject to a 50 percent tariff, while the non-steel and non-aluminum components will face reciprocal tariffs. This dual-structure approach introduces substantial complexity for importers,” Pineda said.
The tariffs were applied immediately as of Aug. 18, with no exception for in-transit goods and with little advance warning, which “has sparked concern within the plastics industry, particularly among equipment suppliers, who were caught off guard."
A total of 18 Harmonized Tariff Schedule (HTS) codes pertinent to the plastics industry were added, including codes that cover equipment (primarily injection molding), parts, auxiliaries, molds and plastic products.
“While the intent is to put U.S. manufacturing into higher gear, tariff-driven shifts in trade policy will continue to have uneven effects,” Pineda said. “It is a plus for U.S. plastics manufacturing. However, U.S. manufacturing relies on both domestic and imported components, reflecting the sector’s evolution over decades.”
He noted that the U.S. plastics industry leans heavily on imported equipment, especially injection molding machines. In 2023, imports accounted for 74.5 percent of domestic shipments; exports were just 28.9 percent.
“This reliance is not a weakness, but a reflection of reality: Essential machinery simply is no longer manufactured in the U.S. anymore,” Pineda said.
A poll conducted by Plastics Machinery & Manufacturing in April and May indicated that processors are mostly seeing negative effects from U.S. trade policy moves, and many said they were reluctant to invest in new equipment.
Pineda said there could be some benefits; for example, the industry could get a boost from manufacturing packaging for reshoring of products that are on the tariff list, such as dairy and shampoo items.
But manufacturers still need the machinery to do the job.
“The plastics industry has evolved over the years, leveraging automation and technology both from the U.S. and abroad. The future of U.S. manufacturing will continue to be driven by ever-changing technology and innovation,” Pineda said. “Continued access to equipment without prohibitive tariff costs is essential to guaranteeing this trajectory.”
