United States (US) Launches Investigation Into Imported Robots and Industrial Machinery, Plastic Industry to Face Impact

On September 26, Zhusuo Vision cited foreign media reports that the U.S. Department of Commerce, based on forthcoming federal documents, has officially initiated measures regarding the import of robots and industrial machinery.The "Section 232" investigation. This action appears to target the machinery sector, but in reality, it is closely related to the plastics industry and is likely to have a significant impact on that sector.

The survey covers a wide range, encompassing key equipment for plastic processing.

The range of equipment involved in this investigation is quite extensive. It includes computer numerical control machining centers, lathes, milling machines, grinding and deburring equipment, as well as industrial stamping and pressing machines. Automatic tool changers, jigs, fixtures, and machine tools used for cutting, welding, and handling workpieces are also included. Additionally, specialized metal processing equipment for handling, forming, or cutting metal, such as autoclaves, industrial ovens, metal surface treatment equipment, electrical discharge machining gears, laser and water cutting tools and machinery, are also part of the investigation. However, drone systems are excluded as they are subject to a separate investigation.

These devices are extremely common in the plastic processing field. In the traditional stages of plastic processing, injection molding, extrusion, and blow molding cannot do without them. Taking the injection molding machine as an example, it is the core of the injection molding process, and efficient and precise operation relies on advanced computer control and robotic assistance. If the import of injection molding machines is restricted, plastic product manufacturing companies may face difficulties in equipment updates and reduced production efficiency. During plastic extrusion molding, extruders also require industrial machinery to achieve stable material delivery and molding control. If there are issues with related imported equipment, the quality and output of extruded products may be affected. Blow molding equipment similarly depends on precise automation and mechanization operations, and import restrictions could affect the quality and consistency of blow-molded products.

In the field of plastic recycling, these devices play a crucial role. In the sorting stage, advanced visual recognition systems and robotic arms can quickly and accurately classify different types and colors of plastic, improving recycling efficiency and purity. In the palletizing stage, automated palletizing machines and robots achieve efficient stacking and transportation, reducing labor costs and intensity. If the import of equipment is restricted, the sorting accuracy and palletizing efficiency of plastic recycling enterprises may decline, increasing operational costs.

Image source: The White House

The purpose of the investigation is clear, focusing on industrial security and impact.

The U.S. Department of Commerce is conducting this investigation mainly to assess the impact of importing these devices on U.S. national security. This reflects the government's concerns about domestic industry safety and national competitiveness.

During the investigation, the Department of Commerce plans to collect information from multiple perspectives. On one hand, they aim to understand the domestic production and demand situation to assess whether the U.S. domestic production capacity in the field of robotics and industrial machinery can meet the domestic market demand, and whether there is any supply-demand gap. For example, whether the number of high-end industrial robots produced domestically in the U.S. is sufficient for use in industries such as automotive and electronics; if not, what is the level of dependence on imports? On the other hand, they need to conduct an in-depth analysis of the roles and risks of major foreign exporters, evaluate the market share, competitiveness of foreign suppliers in the U.S. market, and assess the potential threats to U.S. industrial security. For instance, whether industrial machinery companies from certain countries, whose products are low-priced and high-quality and hold a significant market share in the U.S., could potentially squeeze out domestic companies and impact U.S. industrial security.

The investigation will also focus on the impact of foreign government subsidies and trade practices on the robotics and industrial machinery markets. Foreign government subsidies may cause imported products to be priced lower, resulting in unfair competition for domestic U.S. companies. For example, if a foreign government provides subsidies to industrial robot companies for exports, their products may be priced significantly lower in the U.S. market than domestic products, potentially hindering U.S. companies' ability to sell their products and affecting their development. Additionally, the Department of Commerce is interested in understanding the effectiveness of current trade policies related to robotics and industrial equipment and whether further measures, such as tariffs and quotas, are needed to protect U.S. national security.

Historical experience reference, industry impact or replay.

This investigation is not isolated; the United States has previously conducted similar investigations into industries such as trucks, critical minerals, aircraft, and jet engines. In particular, investigations into steel and aluminum, as well as automobiles and auto parts, ultimately led the Trump administration to impose tariffs. These measures had a significant impact on the relevant import industries and triggered tensions in global trade relations.

The investigation into robots and industrial machinery is likely to lead to similar results. If the United States ultimately decides to impose tariffs on imported products, the cost of imports will rise, directly affecting U.S. companies that use this equipment, especially in the plastics industry. Plastic companies are highly dependent on imported industrial machinery and robots for production. Increased tariffs will raise procurement costs, squeeze profit margins, and may even affect production plans and investment decisions. For example, a plastic products company originally planned to import an advanced injection molding machine to expand production. If tariffs are imposed, the price of this machine may exceed the company's budget, forcing the company to delay its purchase plan and affecting the expansion of production scale.

The subsequent process is clear, and enterprises need to actively respond.

The U.S. Department of Commerce plans to publish a notice for an industrial equipment survey in the Federal Register this Friday, and then initiate the survey.A 21-day public consultation period. During this time, all parties can submit data and analyses and express opinions on issues such as domestic production and demand, the impact of foreign exporters, and the effects of trade policies.

This is a good opportunity for the plastic industry associations and enterprises to express their concerns. The plastic industry associations and enterprises should actively participate and provide the Department of Commerce with detailed data and examples to illustrate how important the import of industrial machinery and robots is to the U.S. plastic industry, as well as the potential negative impacts of imposing additional tariffs. For instance, they can cite specific cases where restrictions on imported equipment have led to production obstacles, increased costs, and decreased market share for companies. At the same time, they can also propose constructive suggestions, such as finding a balance between protecting national security and promoting industrial development, to ensure that the investigation results are more favorable to the development of the plastic industry.

The investigation by the United States into imported robots and industrial machinery is closely related to the plastics industry. Before the results of the investigation are released, companies and associations in the plastics industry should pay close attention and actively respond to potential changes in trade policies to protect their own interests and ensure the healthy development of the industry.