Global Fastener News

The Industrial Fasteners Institute urged the Trump 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.

“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.”

The 232 metals levy ordered by Trump includes a rule requiring foreign steel to be “melted and poured” and for aluminum to be “smelted and cast” within North America. The measure aims to curb imports of minimally processed Chinese steel.

Designed to promote domestic steel industry production, the metals tariffs will increase costs for manufacturers that use the industrial metals to produce goods such as automobiles and appliances, according to IFI.

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.

“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,” the association stated.

“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.”

According to IFI, 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,” the association stated.

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. Many companies are family-owned, small to mid-sized businesses. Raw material accounts for 50 – 60% of a fastener’s cost. Web: indfast.org