August 2022 Volume 4

MEMBERS SPEAK

Hold China Accountable: 301 Tariffs and National Security By FIA's Public Policy Committee

Why are the Section 301 tariffs all policymakers and stakeholders talk about in Washington? The White House is on the verge of determining the fate of our domestic forging industry and altering our position as a global superpower. Forging producers all over the United States are facing numerous challenges threatening to put them out of business. Without the continuation of the tariffs, there is an extremely disproportionate playing field. For years, unfair trade practices by China and others have threatened the viability of the American forging industry. Since 1979, the United States has seen 226 forging plant closures equaling a loss of over 25,000 jobs. The COVID-19 pandemic illustrated the fragility of supply chains and the necessity for a strong manufacturing sector in the United States. Because forged parts are strong and reliable, they are vital in safety- and mission-critical applications. Rarely seen by consumers, automobiles and trucks may contain more than 250 forgings, and planes more than 1,000 forgings. Every industry from aerospace, automotive, energy generation, agriculture, and more requires forged components. If it moves on land, in the air, or on the sea, it contains and relies on forgings. The recent Department of Defense Report on Strengthening Defense-Critical Supply Chains required by Executive Order highlights the criticality of forgings to national security. According to the report, foreign suppliers (such as China) can provide a completed part for the same cost a U.S. forge would pay for just the raw materials. China alone accounts for 50% of global forging manufacturing, and in the last five years has taken another 9% of the global market share. The Executive Order on America's Supply Chain calls for support of a robust national forging industry; without

it, our national security is at severe risk. The magnitude of the threats to our shared national security and prosperity should not be underestimated. Policymakers inWashington, D.C. must recognize the erosion of our domestic manufacturing capacity as a long-term security threat. Without a strong domestic manufacturing base, the U.S. is unable to respond to current and future security threats effectively. Forging operators in America are being pushed out of business because of aggressive dumping and raw material subsidization of forged products by overseas actors. It is an action by other countries to sacrifice our national manufacturing capacity and capability for their gain. Today, we're competing against Chinese forging companies that use unfair trade practices, extremely low wages, subsidized raw material, lax environmental controls, and a Chinese Communist Party intent on destroying our forging and other critical industries. We urge you to use your voice to advocate for continued 301 tariffs against China. Now is the time to act before it is too late and we fall prey to even more predatory practices from China. The manufacturing sector is the backbone of the economy and without national production, we are in grave danger of foreign actors monopolizing global forging. We need your support to tell our policymakers to save the United States forging industry before we cease to exist.

FIA MAGAZINE | AUGUST 2022 71