Tariffs are Taxes on American Manufacturers

Die casting manufacturers operate in a global marketplace, relying on globally priced and readily available raw materials, machinery, and other inputs to compete around the world. Continued interference by government’s around the world can create instability in the market, leading investors to slow their activity and the nation’s economic growth. While NADCA believes the U.S. must do more to enforce our trade laws and hold countries accountable, tariffs on imports artificially increase prices and reduce domestic supply, raising the costs of manufacturing in America.

NADCA members use a number of metals in the castings process including steel, aluminum, magnesium, zinc, and copper, among others. In many cases, a die caster simply melts aluminum into a mold with the resulting product characteristically similar to the raw material used. Without timely and affordable access to these raw materials because of government restrictions, U.S. die casters struggle to supply critical parts and dies to the defense, aerospace, automotive, medical, and agricultural industries, among others. The few magnesium die casters remaining in the U.S. prove that restrictions on imports hurt American manufacturers and drive customers to seek alternative sourcing from Mexico, Asia, and elsewhere. The die casting industry is on the cutting edge of developing the latest technologies for our nation’s defense. Tariffs, import quotas, and other restrictions on raw materials will jeopardize these advancements and set back our national security efforts.

Businesses of all sizes across the manufacturing sector need stability and government policies that allow owners to plan for growth and increase employment. When faced with unpredictable machinery and raw material pricing and availability, investors pull back and manufacturers take a more conservative approach, becoming risk-averse and reducing investment in new technologies and workers. NADCA believes the markets, not regulators should drive the price and availability of raw materials. Even the slightest changes can disrupt the defense industrial base supply chain and risk our warfighters and interests abroad and at home. To help improve the global competitiveness of die casters, their customers and suppliers, NADCA believes the U.S. Congress and administration should enact legislation and policies that address:

  • Section 232 Steel and Aluminum tariffs
  • Aluminum warehouse and market pricing
  • Raw material lead times
  • Domestic and global supply chain resiliency
  • Rare earth and critical minerals
  • Availability of Magnesium Alloy at Globally Priced Rates