Tariffs Impacting the Plastics Industry.

The last time I was in China, we went to an exhibition featuring various molding presses from various countries. It was a rather large exhibit in which other Americans and also Europeans were there to view the various brand equipment. A similar was held in Detroit, Michigan; however, it was not as big.

As the author(s) point out, it could be difficult to plan if the tariffs keep changing or go to an on and off situation. Not sure if this is a plan or indecision on the part of Tr__p.

Trump’s Tariff Expansion Hits Plastics Industry

The Trump administration this week unveiled 50% tariffs on hundreds of “derivative” steel and aluminum products, including imported injection, blow, and compression molds, a move that industry analysts say could strengthen domestic mold manufacturing but also potentially increase costs across the plastics manufacturing sector.

Laurie Harbour, a partner at Wipfli, a Milwaukee, WI–based accounting and advisory firm, told  Plastics Today the tariffs have the potential to level the playing field for US moldmakers. Adding . . .

“It certainly can make them more competitive. The question is: Will these tariffs stay, or will they change yet again?”

Harbour noted that this could provide US tool and moldmakers with an opportunity to become more competitive. 

“They have to work on improving their processes to be more competitive,” she added. “If they improve the business processes, the tariffs can fill the gap.”

Tariffs alone are not the answer, however, and processors may end up paying a heavy price.

Industry responds

The Plastics Industry Association (PLASTICS) has released a new economic analysis, authored by Chief Economist Perc Pineda, PhD, highlighting the impact of the expansion of the Section 232 steel and aluminum tariffs on the plastics industry.

“The US plastics industry leans heavily on imported equipment — especially injection molding machines that have not been produced domestically in years,” he wrote.

The Bureau of Industry and Security (BIS) within the US Department of Commerce has expanded the scope of Section 232 steel and aluminum tariffs by adding 407 Harmonized Tariff Schedule (HTS) codes to the derivative products list.

According to 2023 data, imports accounted for 74.5% of domestic shipments, while exports were just 28.9%. PLASTICS’ Pineda said this reliance is not a weakness, but a reflection of reality: Essential machinery simply is no longer manufactured in the US.

“The rationale for Section 232 tariffs rests on national security,” he wrote. “Plastics play a role here, too — federal defense spending on plastics reached $5.7 billion last year.”

Pineda noted the estimate is part of PLASTICS’ annual size and impact study of the plastics industry, with the next edition set for release on Sept. 16, at an executive briefing for PLASTICS members and the press.

Expansion of the tariffs now encompasses a range of goods across consumer, household, industrial, transportation, chemical, energy, and infrastructure sectors — all of which intersect with the plastics industry value chain.

A ripple effect

The tariffs also apply to Canada, and as a result there are US plastic processors who will be forced to pay more for molds from north of the border.

“There are going to be quite a few unhappy Canadian toolmakers,” Harbour said. “North America needs to find a way to band together on this issue.”

Capacity also could prove to be a problem. Harbour noted that US tool and moldmakers would need to increase capacity.

“We’ve faced capacity issues in recent years,” she said. “We do have capacity, but we also have to build it up if we are going to be competitive.”

The goal of the Trump tariffs, Harbour noted, is to bring manufacturing, including the steel used to make molds, back to US shores. However, the constant changes are creating more challenges, particularly for small- and medium-sized processors.

“These companies are starting each day wondering what the tariffs will hold for them,” she concluded. “These companies are seeing a lot of chaos every day.”

Dual-tariff structure complicates imports

Under the updated policy, the steel and aluminum content of these products will be subject to a 50% tariff, while the non-steel and non-aluminum components will face reciprocal tariffs.

Pineda noted that this dual-structure approach introduces substantial complexity for importers when reporting entries to US Customs and Border Protection (CBP).

Notably, there is no in-transit exception, meaning the tariffs apply immediately to products entered for consumption on or after Aug. 18, 2025.

“The timing has sparked concern within the plastics industry, particularly among equipment suppliers, who were caught off guard by the inclusion of certain HTS codes,” Pineda wrote.

BIS published the Federal Register notice on Aug. 15, 2025, giving virtually no advance notice before implementation.

Plastics-related HTS codes added

The American Mold Builders Association (AMBA) led an effort to add HTS codes for molds to the Section 232 tariff derivative list — which it said was “a key step in protecting US mold builders from unfair foreign competition.”

A total of 18 HTS codes pertinent to the plastics industry were added from chapters 84 and 39. In addition to equipment (primarily injection molding), parts, and auxiliaries, two HTS codes cover molds (84807180, 84807990) and two cover plastic products (39252000 and 39269010).

“While the intent is to put US manufacturing into higher gear, tariff-driven shifts in trade policy will continue to have uneven effects,” Pineda wrote. “It is a plus for US plastics manufacturing,” but, added Pineda, US manufacturing relies on both domestic and imported components, reflecting the sector’s evolution over decades.

Dependence on imported plastics equipment

Pineda also pointed out the US plastics industry leans heavily on imported equipment — especially injection molding machines that have not been produced domestically in years. According to 2023 data, imports accounted for 74.5% of domestic shipments, while exports were just 28.9%.

“For plastics processors making everything from bottle caps to car parts, access to this equipment is mission-critical,” he noted.

For better or for worse, the tariff landscape has had an impact on manufacturing.

National security rationale and plastics’ role

Pineda noted that many derivative products are also end markets for the plastics industry.

“For example, dairy and shampoo products on the tariff list use plastic packaging,” he noted. “Manufacturing them domestically could increase demand for US-made plastic packaging — a positive outcome for the industry.”

Moreover, Pineda noted the plastics industry has evolved over the years, leveraging automation and technology both from the US and abroad.

Pineda concludes: “The future of US manufacturing will continue to be driven by ever-changing technology and innovation. Continued access to equipment without prohibitive tariff costs is essential to guaranteeing this trajectory.”