EXPANSION OF THE SECTION 232 TARIFFS ON STEEL AND ALUMINUM

STATEMENT FROM THE INDUSTRIAL FASTENERS INSTITUTE (IFI)

FEBRUARY 12, 2025 —  IFI is in the process of reviewing the just announced expansion of the Section 232 steel and aluminum tariffs and the removal of the exclusion process for U.S. manufacturers that cannot purchase the raw materials they need in the U.S. in the necessary quantity and quality. We understand that further details on which “steel derivative” products are to be included in the tariffs will be released soon. 

IFI urges the Administration to include fasteners (found in Chapters 73, 74 and 83 of the Harmonized Tariff Schedule of the United States (HTSUS)) in its forthcoming list of steel derivative products. We look forward to working with the Commerce Department in this area. IFI also urges the Administration to exempt our ally Canada from the 232 steel and aluminum tariffs, and to allow for an exclusion process for when a U.S. manufacturer cannot get its necessary raw material in the quality and quantity needed. 

Background: 

IFI represents approximately 85% of North American fastener production, and our members supply fasteners in industrial, automotive and aerospace applications. The U.S. fastener industry employs approximately 42,000 people working at roughly 850 different manufacturing facilities. Individual companies range in size, but many of them are family-owned, small to mid-sized businesses. Raw material costs are 50 to 60% of the cost of a fastener. The fastener industry is critical to all segments of the U.S. manufacturing industrial base. 

Since 2017 when the Section 232 tariffs were first considered, IFI’s position has been that tariffs on raw material imports into the U.S. harm downstream manufacturers and consumers, while only providing short-term relief to U.S. metals producers. We have consistently communicated with the Administration and Congress that as long as the 232 tariffs remain in place, then downstream products like fasteners needed to be included to offset the negative impacts being felt across the North American fastener industry. U.S. fastener manufacturers are at a significant competitive disadvantage to foreign imports, particularly from Asian countries such as Taiwan and China, because downstream products such as fasteners are not included in the scope of the 232 steel and aluminum action. 

The U.S. steel industry cannot make enough of the quality and quantity of bar and wire rod needed by U.S. fastener manufacturers. Products such as cold-heading quality (CHQ) wire rod (HTS numbers 7213.91.30.15 and HTS 7227.90.60.10), nickel-copper bar and wire rod (HTS number 7407.29.40), and A286 stainless steel (HTS 7222 and 7223) are necessary for U.S. fastener manufacturers to make critical components for the U.S. military, the automotive industry, and other vital applications. Without our critical raw materials in the quality and quantity needed in reasonable lead times, IFI members will be unable to service their customers. 

IFI will continue to work with the Administration and Congress to express our need for fasteners to be included in any steel derivatives list for the Section 232 tariff action, and for a manageable way to get bar and wire rod in the quality and quantity we need when the U.S. market cannot supply them.