Posted on 16 Oct 2018
US bearings manufacturers are feeling the grip of section 301 tariffs imposed on $200 billion in imports from China effective as of 24 September, Kallanish has learned.
The Office of the US Trade Representative has received 10,016 comments, including product exclusion requests, as of 15 October.
Among the exemption requests are those from CW Bearing USA of Irvine, California, asking that tariffs on wheel hub bearings be waived.
“Our company is a subsidiary of Cixi Group, which is located in China. As a result, our US business is required to utilize the corporate manufacturing facilities of Cixi Group in China for our bearing requirements. Our parent company does not provide us with the option of switching suppliers and doing so is simply not an option for our company,” the exemption application states.
Other bearing makers are facing similar obstacles. NSK Corporation of Ann Arbor, Michigan, makes anti-friction bearings, steering columns, bearing components, and precision products for US industrial and automotive customers.
In its waiver request, NSK says that obtaining a domestic supplier “…would require comprehensive planning lasting a minimum of 12 to 18 months” and an extended delivery cycle. NSK also cites price point as a factor in buying Chinese products.
“However, we did not simply start buying 'cheap' bearings from a Chinese company. We transferred this business to an NSK plant in China so that we could be assured of receiving bearings manufactured to NSK’s uncompromising quality and safety standards,” the company says in the application.
