Metals, Textiles, Paper, Cabinetry Producers Ask for Continued or Higher Section 301 Tariffs

U.S. Steel, which has 15,000 employees, said it's been a victim of Chinese corporate espionage and cyberattacks. It said the agency should ensure all U.S. imports of iron, steel and steel-intensive products are subject to the 25% tariff. It said buyers of metals and metal products have not paid higher prices as a result of the tariffs. And it said that the new United Steelworkers contract's raises, bonus and increased pension contributions were possible because of the protection provided by Section 301 duties.

Nucor, with 31,000 employees, said the administration should either conduct a new Section 301 investigation on other Chinese policies or strengthen the current enforcement action. Keeping or increasing the 301 tariffs would "encourage market conditions under which U.S. steel manufacturers and producers of downstream steel articles can maintain and increase their production capacity, U.S. employment, and output," the company said.

The American Institute of Steel Construction, which represents steel fabricators, said tariffs on these products reduce China's access to infrastructure plans that contain proprietary information and therefore protect intellectual property.

"While the current tariffs provide important leverage and have benefited AISC members, USTR should also consider increasing the Section 301 tariffs on fabricated structural steel," the group said. It noted that Commerce found that Chinese fabricated structural steel had dumping and subsidy margins of more than 350%, but the International Trade Commission denied industry relief, so 301 tariffs are the only trade protection.

"Notably, the beneficial impacts of the tariffs are only just now being realized by the U.S. industry. Projects that generate orders for fabricated structural steel have long lead times; further, a number of exclusions from the Section 301 tariffs on fabricated steel products were in place between August 23, 2018 through December 21, 2020," the group added.

The Refractory Metals Association, which represents North American tungsten refiners and manufacturers of tungsten chemicals, tungsten metal powders and parts, and tungsten carbide powders and parts, said that about 10% of domestic tungsten consumption is covered by Section 301 tariffs, but eight other tariff lines that are not subject to duties represent 20% to 25% of tungsten consumption.

The group said 25% tariffs on eight tungsten-related tariff lines led to significant reductions in imports of some products, but made no difference for others. Where there were substantial drops, U.S. producers often were the biggest beneficiaries, though Canada, Japan and other allies also captured market share.

"Taking China out of the supply chain will help to protect the R&D investments that domestic manufacturers put into developing their products. Furthermore, it ensures a healthy domestic tungsten industry is in place to supply the critical materials needed for the future growth of the semiconductor, defense, aerospace, medical, electronics, automotive, and power generation industries," the group said.

Many small forging companies asked for the tariffs to continue.

Trenton Forging, with 85 employees, wrote: "While there are some in the United States that would like the Section 301 tariffs removed, there are many more that would benefit from their continued use. We are currently in an industrial war with China. The domestic forging industry has been shrinking at an alarming rate over the past 20 [years] which, by no coincidence, happens to coincide with China's manufacturing rise. The US forging industry, Trenton Forging included, has lost many jobs to the Chinese Communist[s] due to their continued subsidizing of their domestic forging industry. It is also important to note that since the Section 301 Tariffs were implemented, Trenton Forging has won business back from China."

Weber Metals, a forging firm with 330 employees, said state-owned enterprises from China that were going to make parts for China's new commercial jet came to Weber for forged prototypes, but then did production in China. The company said it believes AVIC never intended to buy forgings in the U.S., but was gaining information to help Chinese forgers design parts.

Many small tool and die firms also asked for the tariffs on injection and compression molds to stay.

AJ Tool & Manufacturing LLC, with 19 employees, said Chinese tooling is still cheaper than domestic tooling, even with a 25% tariff. But it said the cost of shipping and delayed delivery, combined with the tariffs, made domestic companies more attractive to customers. AJ said that China has avoided paying tariffs by sending mold components separately from the mold base. "This loophole needs to be addressed," the submission said.

Superior Tooling, with 28 employees, said without the tariffs, the business cannot grow -- and the company still has unused capacity. "Our industry has suffered for more than 25 years due to China's unfair advantages." It said because of low-cost competition, wages for tool and die workers have stagnated while wages for auto repair or HVAC repair have climbed, "because you can't take your Air Conditioner or Car to China for repair. But you can take the Molds and Dies to China. So our industry is dying due to this."

The Wire Decking Coalition, which represents four companies with factories in six states with more than 500 workers, said that Section 301 tariffs have allowed domestic wire decking producers to hire, increase wages and expand production. It acknowledged that prices have increased for wire decking providers as lower-cost imports from China have declined. But it said it hasn't heard complaints from purchasers "as many also benefit from the Section 301 tariffs."

Large companies outside the metal sector also praised the tariffs. Billerud Americas, with 1,701 employees, said the combination of antidumping and countervailing duties on coated paper sheets and the Section 301 tariffs have helped. Rolls of coated paper aren't subject to AD/CVD, Billerud said, so the 301 tariffs are critical for that product segment.

The Wind Tower Trade Coalition also said that both AD/CVD and Section 301 duties have helped its producers. It asked for wind towers from China to face more than a 25% tariff, and asked that some of the revenue be directed to its members.

In building products, home builders complained about the tariffs, but the Tile Council of North America said tariffs should continue on wall and floor tiles, in addition to AD/CVD remedies. It complained that China mislabels goods as porcelain that do not meet those quality standards.

A number of cabinet makers also asked for the tariffs to continue -- or for them to be raised.

Bridgewood Cabinetry, with 270 employees, said the tariffs have been highly effective in counteracting wood kitchen cabinet dumping.

"I believe that it is imperative the U.S. government do all that it can to stop the Chinese government from illegally or unfairly requiring technology transfer from U.S. companies on non-market based terms. I believe that China must be stopped from directing and unfairly facilitating the transfer of U.S. technology and intellectual property to China. China must be stopped from its practice of electronic theft of sensitive U.S. company commercial information and trade secrets," the company wrote.

Hi-Lo Industries, a cabinetmaker with 271 employees, said the enforcement action "has helped to stabilize the industry so that it hasn't been decimated like furniture manufacturing was. Higher tariffs would help to make it a level playing field."

The Coalition of American Millwork Producers said an AD/CVD order helped, as did the Section 301 tariffs. "The 301 tariffs have meaningfully changed the industry’s trajectory," the group said, with Chinese woodworking and millwork product exports falling by 47% between 2017 and 2021.

Domestic plywood and layered wooden floor producers also asked for the tariffs to be maintained.

In agriculture, the California Cling Peach Board said keeping the duties on imported canned peaches is critical to prevent more cannery closures -- the last one, in 2018, cost 300 year-round jobs and 1,000 seasonal jobs.

The American Amino Acids Federation asked that tariffs continue on the currently targeted amino acids and that lysine and threonine be added to the target list. "Our industry continues to strongly assert that China’s unfair trade practices in the amino acid industry have not just continued -- they have gotten worse since Section 301 tariffs were initiated in 2018," the group said.

In apparel, the National Council of Textile Organizations asked that some tariffs continue but that textile machinery, dyes and finishes and some textiles unavailable domestically be removed from the list. It also asked that Section 301 exclusions on disposable gowns and masks end.

"The U.S. textile and apparel manufacturing sector has been heavily impacted by China’s myriad unfair trade practices, including those specifically related to IP. China’s illegal actions have contributed to the direct loss of over one million U.S. jobs in our sector," the group said. It asked that tariffs on finished apparel should go up, and that China should not benefit from an $800 de minimis level. It argued that the 7.5% tariffs on most apparel from China is not driving inflation -- it said that Chinese apparel import prices have fallen 25% since 2019.

In footwear, athletic shoe manufacturer New Balance, with 3,300 employees, said in the four years since Section 301 tariffs were levied on Chinese goods, the company opened a new factory in Massachusetts, added a second shift at two Massachusetts factories, and is about to start an expansion in Maine.

"Government actions like 301 investigations help create public awareness of the significance of purchasing Made in USA products," it said, driving demand for New Balance shoes.