Impacts of Section 232 Tariffs Expansion on U.S. Plastics Industry

Plastics under pressure U.S. tariff expansion poses challenges for plastics industry

2025-09-04 Source: Plastics 2 min Reading Time

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The U.S. expansion of Section 232 tariffs adds new complexity for the plastics industry. Plastics Chief Economist Perc Pineda, PhD, explains how the measures affect machinery imports, national security, and the future competitiveness of U.S. manufacturing.

New Section 232 tariffs reshape U.S. plastics machinery trade, adding complexity for importers while highlighting the industry’s reliance on foreign equipment and its role in national security.(Source: free licensed / Pixabay) — New Section 232 tariffs reshape U.S. plastics machinery trade, adding complexity for importers while highlighting the industry’s reliance on foreign equipment and its role in national security.
(Source: free licensed / Pixabay)

The U.S. Department of Commerce has widened the scope of Section 232 steel and aluminium tariffs, a move that could have far-reaching implications for the plastics industry. Writing in an analysis for Plastics, Chief Economist Perc Pineda, PhD, notes that the Bureau of Industry and Security (BIS) has added 407 Harmonised Tariff Schedule (HTS) codes to the derivative products list, spanning sectors from consumer goods to energy and infrastructure.

The updated measures introduce a dual-tariff structure: steel and aluminium content will face a 50 percent tariff, while non-steel and non-aluminium components will be subject to reciprocal tariffs. Pineda highlights that this adds “substantial complexity” for importers working with U.S. Customs and Border Protection, especially as the policy took effect on 18 August with no in-transit exceptions. With the Federal Register notice published only three days earlier, many in the industry, particularly machinery suppliers, were left with little time to prepare.

Eighteen HTS codes directly relevant to plastics were included, covering injection moulding equipment, parts, auxiliaries, moulds and certain plastic products. According to Pineda, while the tariffs are intended to accelerate U.S. manufacturing, they could prove a double-edged sword for a sector that relies heavily on imported machinery. In 2023, imports accounted for 74.5 percent of domestic shipments, underscoring the dependence on foreign-made equipment no longer produced in the U.S.

National security remains the rationale behind Section 232. Pineda points out that plastics also fall under this remit, with U.S. federal defence spending on plastics reaching 5.7 billion dollars last year. The Plastics association will release updated figures in its Size and Impact report on 16 September.

Looking ahead, Pineda observes that the new tariff regime could increase demand for domestically produced plastics packaging in certain sectors, such as food and personal care. However, he warns that innovation and competitiveness in U.S. manufacturing will continue to depend on access to advanced equipment at sustainable cost levels.

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