Plastics Industry Body Raises Concerns over ‘Dangerous’ and 'Disruptive' Tariffs

SEATTLE (Scrap Monster): The Plastics Industry Association (PLASTICS), formerly SPI, has termed the U.S. tariffs on steel and aluminum as ‘dangerous’ and ‘disruptive’. William R. Carteaux, President and CEO, PLASTICS, in a statement issued yesterday, stated that the decision not to spare Mexico, Canada and the EU will only benefit its trade rivals and lead to job losses in the country. It must be noted that the above three countries are U.S’s strongest trading partners.

According to PLASTICS, steel and aluminum products are vital for the functioning of many plastic companies. For instance, the molds that are used to shape raw plastic materials into consumer products are mostly made out of steel and aluminum. Due to lack of availability within the U.S., many mold makers use steel imported from the EU. The recently imposed tariffs could harm the smooth functioning of many of these companies and may even lead to closure of operations.

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The statement further notes that the tariffs are likely to hamper the growth of country’s manufacturing sector. Lack of stability and consistency in trade policies will curtail job creation in the sector. Moreover, it may damage the spirits of future trade talks between the U.S. and these countries, including the ongoing North American Free Trade Agreement (NAFTA) negotiations.

The trade association urged President Trump and his government to reconsider the dangerous and disruptive approach to trade policy. It called for collective effort by all parties to deliver real benefits to the entire manufacturing industry and the families and communities that depend on them.

Beginning June 1, 2018, the administration had imposed a 25% tariff on steel imports and a 10% tariff on imports of aluminum.