U.S. Trade Representative exempts New York Air Brake from tariffs on steel and aluminum, Schumer says

WATERTOWN, N.Y. — New York Air Brake (NYAB) in Watertown is now exempt from tariffs on steel and aluminum.

That’s according to U.S. Senate Minority Leader Senator Charles Schumer (D–N.Y.) who made the announcement Friday. The decision followed Schumer’s meeting with U.S. Trade Representative (USTR) Robert Lighthizer, the senator’s office said.

NYAB manufactures various types of air brakes and train-control systems for the rail industry around the world.

NYAB, one of Watertown’s largest private employers, was put at a “competitive disadvantage” because of the tariffs, Schumer explained.

The tariffs “ran the risk” of costing NYAB millions of dollars and “jeopardizing good-paying jobs.” Additionally, the tariffs were not impacting NYAB’s main competitor because it produces in Mexico, “placing an unfair burden” on NYAB.

The competitor is Wabtec Corp. of Wilmerding, Pennsylvania, a manufacturer of freight car products, according to website NNY360.com.

Schumer thanked Lighthizer for “heeding his request and for ensuring that NYAB remains a fundamental component” of the North Country economy.

The situation

Schumer explained that the Trump administration this year imposed Section 301 tariffs at a rate of 25 percent on specialty steel and aluminum products that NYAB uses to make its train brakes.

The tariffs were having a “specifically disproportionate effect” on NYAB because its only competitor avoids the U.S.-imposed tariffs, per the release. That competitor imports its aluminum and steel directly into its factory in Mexico, where they manufacture their products and then ship the finished product to railway-vehicle assembly factories, many of which are also located in Mexico.

“The tariffs, in this case, were benefitting a foreign competitor and doing real harm to New York Air Brake and its 500 critical North Country jobs,” Schumer said in the release. “I’m so glad to hear that USTR Lighthizer agrees with me, and will be leveling the playing field by exempting NYAB from these costly tariffs. NYAB has been a mainstay of the North Country for more than 125 years.”

About NYAB

Founded in 1890, NYAB maintains its headquarters and primary design, development and manufacturing capabilities in Watertown. The company employs 500 people at its Watertown factory.

NYAB is a member of the Munich, Germany–based Knorr-Bremse Group, a manufacturer of braking systems for rail and commercial vehicles.

Contact Reinhardt at ereinhardt@cnybj.com