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U.S. Chemical Companies Heavily Targeted by Chinese Tariffs
U.S. chemical companies are expressing alarm over the growing trade conflict with China. As a key importer of U.S. resins and other chemical products, China has announced that it will target the chemical sector in response to the Trump Administration’s own tariffs, announced earlier this month. The list includes 106 U.S. products, including vinyl polymers, plates, sheets, strips, moldings, and even some manufacturing equipment.
"China is one of the U.S. chemical industry's most important trading partners, importing 11 percent, or $3.2 billion, of all U.S. plastic resins in 2017," the American Chemistry Council said in a statement. "We are particularly concerned that 40 percent of the products to which China has assigned new tariffs are chemicals, including low-density polyethylene, PVC, polycarbonates, acrylates, and others."
China plans to impose a new 25 percent tariffs on $50 billion of American goods in response to the Office of the U.S. Trade Representative announcing a potential 25 percent on $50 billion worth of Chinese products. The U.S. duties could go into effect as early as late May. China has said it will not impose the tariffs until the U.S. acts first.
"U.S. chemical manufacturers believe the principles of free and fair trade should apply to all members of the WTO, and that includes China," ACC said. "However, engaging in a trade war with one of our country's most significant trading partners is not the answer. We strongly urge both the U.S. and Chinese governments to work together to come to a satisfactory and mutually beneficial decision before this situation escalates further."
VI will be addressing trade issues with the Trump Administration and Congress at our annual Congressional Fly-in, on June 19 and 20, in Washington, DC. Please follow the link below to register.