Adapting Ahead: U.S. Plastics Machinery Faces New Tariff Dynamics

Perc Pineda, PhD, Chief Economist, PLASTICS

August 27, 2025 

The Bureau of Industry and Security (BIS) within the U.S. Department of Commerce has significantly expanded the scope of Section 232 steel and aluminum tariffs by adding 407 Harmonized Tariff Schedule (HTS) codes to the derivative products list. This expansion now encompasses a wide range of goods across consumer, household, industrial, transportation, chemical, energy, and infrastructure sectors—all of which intersect with the plastics industry value chain.

A 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. This dual-structure approach introduces substantial complexity for importers when reporting entries to U.S. 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 August 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. BIS published the Federal Register notice on August 15, 2025, leaving virtually no advance notice before implementation.

Plastics-Related HTS Codes Added

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 U.S. manufacturing into higher gear, tariff-driven shifts in trade policy will continue to have uneven effects. It is a plus for U.S. plastics manufacturing. However, U.S. manufacturing relies on both domestic and imported components, reflecting the sector’s evolution over decades.

Dependence on Imported Plastics Equipment

The U.S. plastics industry leans heavily on imported equipment, particularly injection molding machines, many of which are sourced from overseas, though production continues in the U.S. 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.

National Security Rationale and Plastics’ Role

The rationale for Section 232 tariffs rests on national security. Plastics play a role here too—federal defense spending on plastics reached $5.7 billion last year. This estimate is part of PLASTICS’ annual Size and Impact study of the plastics industry, with the next edition set for release on September 16, 2025, at an Executive Briefing for PLASTICS members and the press. Registration for the event is now open.

Many derivative products are also plastics end markets. For example, dairy and shampoo products on the tariff list use plastics packaging. Manufacturing them domestically could increase demand for U.S.-made plastics packaging—a positive outcome for the industry. The plastics industry has evolved over the years, leveraging automation and technology both from the U.S. and abroad. The future of U.S. 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.