By Angela C. Gibian

Independence, OH - The Forging Industry Association urged the Office of the United States Trade Representative to enact more competitive trade policies – including instituting higher tariffs – and close loopholes that are allowing Chinese and other imports to crowd out domestic forgings and undermine national and economic security.

“Over the past two decades, manufacturers watched in real time as China increased exports, leaving China in control of 46 percent of the global forging market,” Angela Gibian, FIA’s deputy chief executive, said at a public hearing that USTR convened on “Promoting Supply Chain Resilience”. “Trade laws should work in real time to prevent this type of market concentration, so the ‘next China’ does not undermine domestic supply chains.”

Gibian outlined the critical role of metal castings and forgings in national defense and infrastructure. She noted that there are as many as 1,000 forging in aircraft, 550 on a heavy tank, and 250 in passenger vehicles or trucks, while a typical wind turbine requires 20 metric tons of forgings. “These products are a critical part of U.S. national and economic security,” she said.

But current tariffs on forgings and other products she described as “of national security and economic significance” are not sufficient. “Imports of products in this special category should face a higher tariff rate, including forgings,” Gibian testified. “While the tariff rate of 25 percent continues to make U.S. forgings more competitive, FIA members report that forged imports from China remain 40 to 80 percent cheaper. A special category with a higher tariff rate will help protect manufacturers and the supply chain.”

In her testimony, Ms. Gibian emphasized the importance of updating America’s trade laws to ensure that the country’s competitors in the global marketplace, such as China, do not have the ability to evade tariffs or duties and undermine domestic supply chains. “The U.S. needs to update its system of trade laws to adapt to today’s global strategy of evading tariff actions through tactics including through transshipment and transnational subsidies,” Ms. Gibian testified.

FIA appeared at the USTR hearing along with representatives of other domestic industries, including retail, textiles, construction, solar energy, and mining. FIA remains committed to working with the Biden Administration to support American forgers and the critical role they play in domestic supply chains. Visit www.forging.org/advocacy to view and download Ms. Gibian’s oral testimony.

 The Forging Industry Association is headquartered in Independence, Ohio. FIA’s 230+ member companies comprise the only trade association dedicated to promoting and serving the forging industry in North America. FIA’s producer member companies manufacture approximately 75% of the custom forgings volume produced in the United States, Canada and Mexico. Its supplier members manufacture materials and provide services used by the forging industry.