SC&RA presses for US tariff relief at hearing

On May 5, 2026, SC&RA member Mike Appling, CEO of LiftHigh Cranes & Rigging, testified on behalf the SC&RA at a hearing at the U.S. International Trade Commission.

The hearing, Initiation of Section 301 Investigations of Acts, Policies, and Practices of Certain Economies Relating to Structural Excess Capacity and Production in Manufacturing Sectors, concerns tariff relief.

Mike Appling, CEO, LiftHigh Crane & Rigging, testified on behalf of the SC&RA and its members at a hearing of the U.S. International Trade Commission.

Appling shared the impact of tariffs on small businesses with the committee members. In addition, Appling shared SC&RA’s requests as follows:

• Zero rate under Section 301 for EU, Canadian and Japanese cranes, trailers, and parts. These products are not the result of any unfair trading practice that is the subject of this investigation. If USTR decides otherwise, any rate should reflect these products’ criticality to domestic interests and the Administration’s economic goals.
• Proportionate tariff rates on Chinese products. Tariffs on China should be set at a level that allows fairly traded imports the opportunity to supply the U.S. market with critically needed construction inputs. A one-size-fits-all global rate only benefits China’s structural overcapacity. • Zero rate tariff treatment for ultra-high-strength steel grades (S960QL, S1100, S1300) imported from the EU and Japan, which are not produced domestically in sufficient quantities and are essential inputs for domestic crane and trailer manufacturers.
• No stacking of Section 232 and Section 301 tariffs for European, Canadian and Japanese products, consistent with the precedent established in the U.S.-EU Framework Agreement for automobiles and automobile parts.
• A 24-month phase-in period for any Section 301 tariffs imposed on European, Canadian or Japanese cranes and trailers, with a grace period for merchandise already in transit or under contract.
• A tariff-rate quota to ensure the availability of a sufficient historical volume of fairly traded EU, Canadian and Japanese imports, protecting the domestic market from an influx of lower-quality Chinese products while encouraging the growth of domestic capacity.

Joel Dandrea, SC&RA CEO, attended the four-day hearing. “We do not expect an answer to our requests before July,” Dandrea explained. “However, we will continue to execute our strategies to support tariff relief for our members to the U.S. Department of Commerce and on the Hill with members of Congress.”

“SC&RA fully supports addressing China’s structural overcapacity,” Appling testified. “But the EU, Canada and Japan are proven, trusted allies that do not engage in industrial overcapacity, dumping, forced labor, or any other unfair trade practice with respect to these products. There is no basis for including their merchandise within the scope of proposed Section 301 action. These products are not commodities or true steel derivatives. They are made to order, built to customer specification, and require precision engineering, specialized steel, hydraulics, motors, sensors, and software. Steel represents a minority of total product value. Extending Section 301 coverage would compound what SC&RA believes was the inadvertent misclassification of these goods as Section 232 steel derivatives in August 2025.”

Appling continued, “Applying Section 301 tariffs to EU and Japanese cranes would achieve the opposite of the investigation’s stated purpose – it would entrench, rather than reduce, US dependence on Chinese industrial production. Since the shift to Section 122-based tariffs at equivalent rates across all three economies, the competitive landscape has shifted dramatically in China’s favor. Chinese manufacturers already undercut EU and Japanese pricing by approximately 50 per cent. Any additional cost burden on allied merchandise will accelerate the shift to Chinese sourcing. The STS crane precedent is instructive. Section 301 tariffs on STS cranes did not prevent Chinese dominance – China now controls over 70 per cent of global production. The only practicable way to counter China’s strategy is to maintain a cost-competitive EU and Japanese supply chain. Increasing tariffs on allies destroys that competitive buffer.”

Appling said approximately 80 per cent of cranes used in US construction are imported. Less than 3 per cent of global all terrain cranes are manufactured here. No US company manufactures tower cranes. Lead time to build additional domestic manufacturing capacity is five to seven years.

“Critical infrastructure projects – data centers, nuclear facilities, LNG terminals, semiconductor fabrication plants, defense installations – cannot pause while that capacity develops,” Appling said. “The problem extends up the supply chain. Ultra-high-strength steel grades essential to crane and trailer manufacturing (S960QL, S1100, and S1300) are not produced domestically in sufficient quantities, and US steel manufacturers have indicated there is no compelling business case to do so.”

The majority of SC&RA members are closely held, family-owned businesses on thin margins, Appling said.

“Construction equipment costs are already projected to rise 27 per cent overall and 45 per cent for imported equipment,” he explained. “Further increases under Section 301 risk serious delays in critical infrastructure projects.”

The full testimony can be found here: