The Compressed Gas Association (CGA) has warned that the proposed tariff expansion could disrupt supplies of equipment essential to manufacturing medical, industrial, and specialty gases.
The concern comes after considerations to expand Section 232 tariffs on steel and aluminium to cover certain types of gas liquefaction and separation equipment.
The CGA estimates the affected equipment market is worth around $700m per year, meaning a 50% tariff could add more than $350m in extra costs for US gas producers and downstream industries.
Additionally, it notes that the Committee on Pipe & Tube Imports (CPTI) is not aware of any domestic production of the equipment in question, leaving US manufacturers wholly dependent on imports.
Under Section 232 of the Trade Expansion Act of 1962, the US President may impose tariffs if certain imports are judged to threaten national security. In June, US President Donald Trump raised tariffs on steel and aluminium imports from 25 % to 50 % as part of a broader Section 232 action.
CGA President and CEO Rich Gottwald wrote to US Commerce Secretary Howard Lutnick, urging the Bureau of Industry and Security to reject the request from the Committee on Pipe and Tube Imports to add more equipment categories to the scope of Section 232 measures.
“Tariffs on critical gas equipment would drive up costs, restrict access to essential materials, and ultimately harm both US industry and consumers,” the letter read.
Gottwald highlighted the potential for increased consumer prices for products and services that rely on compressed gases, including medical oxygen, food packaging, and industrial manufacturing.
The CGA also argued that limited domestic manufacturing capacity makes imports essential to meeting US demand and questioned whether CPTI accurately represents the US steel pipe and tube industry, requesting the tariff expansion.
The CGA represents 165 companies, supports 34,000 US jobs, operates over 900 facilities, and contributes over $50bn to the US economy.