Metalworking machinery from China might escape new 25% tariff

Metal fabricators looking to purchase Chinese-made machine tools without the additional burden of a tariff will have a chance to make their case to the federal government. Andrii Atanov/iStock/Getty Images Plus

While all manner of steel and aluminum product imports from China now face a new 25% tariff, Chinese-made metalworking machine tools, especially important to domestic metal fabricators, might not be subject to new tariffs.

The U.S. Trade Representative (USTR), in announcing the new tariffs, which were assessed because of nefarious China government trade policies, said it did not want to penalize U.S. manufacturers given the Biden administration’s stated commitment to “reshoring.” So on Oct. 15, the USTR opened an electronic portal (comments.ustr.gov) for accepting exclusion requests under the docket “Temporary Exclusions for Machinery Used in Domestic Manufacturing,” which can be found at www.regulations.gov under the tag USTR–2024–0020. The deadline for submitting exclusion requests is March 31.

The types of equipment that are eligible for tariff exclusion are listed here. Scroll down to the very end of that Federal Register notice to find Annex E, which lists the manufacturing equipment eligible for exclusion from the 25% China tariffs. There are a large handful of machines used by fabricators, a small sampling of which are:

Exclusions will not be granted automatically, of course. Once the USTR receives an application, anyone can object to the request in the ensuing 30 days. Then the applicant has 15 days to reply to that objection.

In terms of justifying any request, besides company and product technical information, the applicant has to say whether the particular product is subject to an antidumping or countervailing duty investigation by the Department of Commerce, how the equipment will be used, if the company will use the equipment in conjunction with a federal funding program such as the Inflation Reduction Act (IRA) and CHIPS and Science Act, and whether the equipment is available in the U.S. or a third country and the applicant has made an effort to source the equipment there.

A response to a product exclusion request must be submitted using USTR’s online portal mentioned previously. Responses to exclusion requests, supporting or opposing, will be publicly available. To file a response, an interested party does not have to register.

The Occupational Safety and Health Administration (OSHA) has proposed a first-time indoor heat exposure standard. It would require employers to take a set of initial steps when temperatures in a workplace hit 80 degrees F and a second set of more comprehensive steps when the temperature hits 90 degrees F.

At the first level, employers would have to ensure workers have readily accessible, cool drinking water (at least 1 quart per hour) and allow paid rest breaks if needed. Specifically at indoor work sites, a company must provide one or more readily accessible break areas with air conditioning or increased air movement and, if appropriate, dehumidification. Companies also must implement an acclimatization plan for the first week of work for new and returning employees.

Above 90 degrees F, an employer also would be required to provide paid rest breaks—a minimum of 15 minutes every two hours. (A meal break—whether paid or unpaid—might also serve as a rest break.) Companies also must set up an observation system to check employees for the signs and symptoms of heat-related illnesses, maintain effective two-way communication with employees who are alone at a work site at least every two hours, and provide a heat hazard alert to employees on the importance of drinking water and following lifesaving emergency procedures.

OSHA is in the process of weeding through thousands of comments and might make some changes if and when it publishes a final rule. Of course, changes in the White House and Congress could change how OSHA proceeds on this matter.