The USA is in the process of trying to impose increases on import duties in a bid to protect its national interests. There are two separate issues within the new Import Duty proposal which may affect Sealing Devices. Section 232 and 301 Section 301 is orientated around the USA’s concern over intellectual property rights and its belief that China has not completely honoured previous agreements. As such the USA wishes to impose $50bn worth of import duties on China with a threat of raising this to $100bn. It is likely that these negotiations will last some time. At the current time Mechanical Seals and some metallic based gaskets may well be affected.

Section 232 of the new proposed Bill would seek a 25% increase in import duties on steel products and 10% on Aluminium on products coming from China, Europe, Canada and Mexico. As such HS Codes on Gaskets 8484 9000, Mechanical Seals 8484 2000, some Expansion Joints 4009 4200 and Polymeric Seals 8481 4000 are affected under the proposal. The negotiations with the EU are difficult and if you wish to read the latest position from the EU use this link: http://europa.eu/rapid/press-release_IP-18-3641_en.htm.

The EU (Canada and Mexico) had an exemption from the implementation of these duties until the 1st May but this has been extended until the 1st June 2018. It is a very fluid picture, so we have set up a working group with the help of the Smith’s Group to monitor the situation in the USA and Europe. If you would like to be part of this group could you please contact David Mitchell or Mark Neal.