ISRI Urges Permanent Exclusion for Shredder Wear Parts from China Section 301 Tariffs

(February 22, 2023 - Washington, D.C.) – ISRI filed formal comments with the U.S. Trade Representative (USTR) urging the administration to permanently exclude imports of shredder wear parts from the China Section 301 tariffs. The Section 301 exclusion for shredder wear parts is currently set to expire on May 31, 2024. 

“A permanent exclusion for shredder wear parts from the Section 301 tariffs ensures the viability of our nation’s recycling and steelmaking sectors,” said ISRI Assistant Vice President of International Trade and Global Affairs Adam Shaffer. “U.S. recyclers rely on a steady supply of shredder wear parts to maintain operations that enable the U.S. to lead the world in the production of clean steel made with recycled content. Permanently removing these products from the tariff list will ensure U.S. recyclers can provide U.S. steelmakers with the metal inputs they rely on for industry‐leading electric arc furnace (EAF) steel production, which is setting the standard for 21^st century global steel production.”

The ISRI submission detailed the uncertainty U.S. recyclers face if shredder wear parts are not permanently exempted from the tariffs, particularly as global demand for recyclables continues to rise.  The comments highlighted that “U.S. recyclers are true environmental stewards, helping conserve natural resources, reducing energy usage and lowering carbon emissions.” As USTR determines the outcome of the four-year statutory review process of the China tariffs, ISRI focused on the lack of domestic availability for these crucial components and that Chinese foundries produce more than 90 percent of the global supply each year. Without a permanent exclusion, U.S. recyclers would be forced to absorb the costs of the tariffs, as there are not viable alternative suppliers worldwide that could satisfy demand by U.S. recyclers.  

In 2022, U.S. recyclers processed 137 million metric tons of materials, including approximately 70 million tons of iron and steel, and shredder wear parts are an essential component of the equipment that helps to ensure the competitiveness of the U.S. recycled materials industry. In the U.S., recycled iron and steel is the single most important raw material input for domestic steel production, accounting for approximately 70 percent of steel output nationwide.