Us mould makers have been trying to claw back jobs from Chinese mould companies for more than two decades, emphasising to oems the lack of quality and productivity in Chinese moulds despite low prices.
On November 29, the American mold builders association (AMBA) filed an official comment with the office of the United States trade representative (USTR), asking it not to extend for another year a 25 percent tariff exemption for importers of plastic injection molds from China.
Importers and manufacturers have until 30 November 2019 to support or oppose the suspension or reinstatement of the 25 per cent tariff on Chinese imports.
The comments come ahead of a December 29, 2019 deadline for the ustr to resume tariffs.
AMBA members report that they have the ability, authority and willingness to meet current and future mold construction needs.
To counter the argument made by some importers that demand is too high, AMBA has shown the federal government that the United States has 1,439 die manufacturing facilities;
Nearly $500 million in open modeling capacity;
Maintain a 75 percent utilization rate and be able to exceed quality and meet Chinese delivery times at the same time."
AMBA also notes that U.S. molds are critical to national and economic security.
The official report to the ustr referred to a recent survey by Harbour Results, a manufacturing consultancy with expertise in downstream industries, which showed that 60 per cent of mould makers reported losing more business to low-cost countries in 2019 than in previous years.
Kym Conis, managing director, said, "we recognize the challenges of pursuing structural reforms in China and commend USTR for its commitment to addressing issues long neglected by previous administrations.
However, we remain concerned that too many import exclusion claimants use price as their primary motivation for applying for a 301 tariff extension without making a significant effort to identify alternatives to the us or third countries that are readily available."
In July 2018, the U.S. government imposed a 25 percent tariff on plastic injection molds imported from China;
However, on December 28, 2018, us importers were exempted from tariffs for 12 months.
More than 150 die makers have submitted comments opposing the extension of the tariff suspension, making it clear that the United States has enough capacity to meet demand.
AMBA added that it looks forward to working with the trump administration to strengthen manufacturing in the United States, ensuring that U.S. mold makers continue to provide thousands of jobs across the country and supply plastic injection molds for decades to come.