Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Plastics News China
  • Rubber & Plastics News
logo-pn-color
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • End Markets
    • FYI Charts
    • LSR World
    • Multimedia
    • NPE2021
    • K Show
    • ENGEL Sponsored Content
    • Special Reports
    • Top materials of injection molders
      Recycled PET use by product category
      US PET, flexible packaging desintations
      Global fluropolymers additives market: CAGR
    • Exhibitors back NPE cancellation: ‘We couldn't take that risk'
      NPE2021 canceled as in-person event
      NPE reviews its options as pandemic prompts exhibitor to exit
      Machine builders meet pressing needs for plastic in 2020
    • Sponsored By ENGEL Machinery
      Tailored maintenance for injection molding machines and robots
      Sponsored By ENGEL Machinery
      Improve maintenance efficiency with e-connect.monitor
      Sponsored By ENGEL Machinery
      Maximum precision for lowest shot weights
      Sponsored By ENGEL Machinery
      Even more cost effectiveness for small precision parts
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • What Keeps You Up At Night
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Polymer Points Live
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Videos
    • Galleries
    • Podcasts
    • CEO Issue
    • Best Places to Work
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • Heavy Metal
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • Perspective
    • Mailbag
    • Watching, and hoping, for progress in 2021
      COVID-19 stories dominate 2020 headlines
      Plastic Globes ask: Was there a lighter side in 2020?
      Compounders write a business survival story in 2020
    • Kickstart: Electric cars, recycling and warm mittens
      Kickstart: Welcome to the VUCA economy
      Let's get social
      Kickstart: A Corvette crossover? No thanks
    • Heavy Metal: Coronavirus edition, plus the work of working from home
      Don't put off succession planning
      What's a good gift for your cobot? Batteries?
      Here's some big ideas to mull over the holidays
    • Chase expands giving campaign in 2020
      McDivitt will showcase Ascend's COVID-19 work on CNBC's Mad Money
      Move over, Plastic Man: Here comes Plastic Woman
      Star in spotlight with West Virginia philanthropy award
    • There was no choice but canceling NPE still a big deal
      The business case for producer responsibility
      Think divided government stalls plastics legislation? Think again
      ACC, NAM eye economic priorities in Biden presidency
    • Just how big is thermoforming in North America?
      Changing names for compounders embracing corporate branding
      Diversity the key to outperforming the market
      A timeline of the industry's COVID response
    • There was no choice but canceling NPE still a big deal
      Watching, and hoping, for progress in 2021
      The business case for producer responsibility
      Compounders write a business survival story in 2020
    • Perspective: Plastics manufacturers — a surprising contribution to sustainability
      Plastics industry business owners: Listen to your future workforce
      Perspective: ‘Fake news' of a different sort?
      Perspective: Making products in the USA is good for the planet
    • Modernizing recycling infrastructure will benefit businesses as well as the environment
      Mailbag: Oil-plastics connection is overstated
      Mailbag: Plastics recycling not cost-effective
      Mailbag: Price increases hurting North American PE buyers
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
    • Maintenance can ensure efficient blender operation
      Dosing: Perfect for adding color
      Blending vs dosing: What you need to know
      Going low or high: Comparing volume
    • Colors and custom compounds
      In the laboratory: Compounding solutions
      Recycling content: Resins going ‘green’
      Compounding: Glass and other fillers
    • Dryer maintenance: Don’t err with air
      Dryers: Options for a shop’s process
      Dryer installation: Going central?
      Resins: Hygroscopic or non-hygroscopic
    • Electric injection molding presses: Efficiency is key
      Hydraulic injection molding machines
      Proper maintenance can prevent downtime
      Hybrid injection molding machines
    • Purging Hot runners: Open or closed methods
      Purging extrusion machinery
      Purging extrusion blow molding machines
      Purging: Chemical, abrasive and non-abrasive
    • Controls, special applications boost production, profitability
      Robot maintenance key for smooth operation
      High-speed robots: A rapid way to increase efficiency
      Robots: Every shape and size
    • Maintenance: Key for efficiency
      Shredders: Plastic in pieces
      Safety first for size reduction
      Granulators: The right fit
    • Structural foam molding: Flexibility for processors
      Video: Structural foam molding
    • Mold inventory: How many molds does a shop have?
      Molds: Innovation
      Mold changeover: Saving time and money
      How molds work
    • Labor: Apprenticeships may provide answer
      College training, programs
      Internships: Solving the skills gap in-house
      Lean Six Sigma: Transforming business operation
  • Events
    • Plastics News Events
    • Industry Events
    • Livestreams/Webinars
    • Ask the Expert
    • Polymer Points Live
    • Reifenhäuser Technologies Livestreams
    • 2020 Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
    • Polymer Points Live - February 2021
      Polymer Points Live - January 2021
      Polymer Points Live - December 2020
      Polymer Points Live - October 2020
    • Plastics in Healthcare 2020
    • Plastics News Executive Forum
    • Plastics in Automotive
    • Plastics News Caps & Closures
    • Plastics in Healthcare
    • Women Breaking the Mold Networking Forum
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Data Store
  • Directory
  • More+
    • Classifieds
    • Digital Edition
    • Newsletters
    • Sponsored Content
    • Processor of the Year submissions
    • White Papers
    • Sponsored By Mitsubishi
      Innovative new technology from Mitsubishi Engineering-Plastics Corporation helps reduce emission footprints
      Canon Virginia, Inc.
      Sponsored Content By Canon Virginia, Inc.
      Canon Virginia Inc. brings collaboration to the table
      Sponsored By CDS MACHINES
      Facing medical equipment shortages during COVID-19 outbreak?
      Sponsored Content By Canon Virginia, Inc.
      Transform your molding capabilities with the Canon Shuttle Mold System
    • Sponsored By Conexiom
      Use Sales Order Automation to free up time for CSRs to focus on customers, not manual entry
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
May 10, 2019 02:00 AM

Chemical, manufacturing groups oppose US tariff hike

Steve Toloken
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Port of Los Angeles
    Containers going through the Port of Los Angeles.

    Washington — The U.S. government followed through on plans to raise tariffs May 10 on $200 billion worth of imports from China, but the decision is drawing opposition from chemical and manufacturing industry trade groups.

    Talks between Washington and Beijing were continuing at press time, as the American Chemistry Council and the National Association of Manufacturers urged a solution to trade disputes without using tariffs.

    In a statement before the tariffs went up, ACC said that “the risks of continuing to use tariffs as a negotiating tactic with China are simply too high — and any potential benefits still unclear.”

    NAM urged negotiators to “accelerate their efforts to reach a lasting agreement that ends China's unfair practices, eliminates tariffs and provides real enforcement.”

    President Donald Trump raised tariffs on $200 billion in imports to 25 percent from what had been 10 percent. The administration said the higher tariffs only apply to goods shipped on or after May 10, not products in transit.

    The U.S. government, in a May 8 announcement, said it was hiking tariffs because “in the most recent negotiations, China has chosen to retreat from specific commitments agreed to in earlier rounds.”

    Washington has sought what it calls “structural changes” in China's economy on issues like forced technology transfer, intellectual property protection and cyberspace.

    A spokesman for China's Foreign Ministry told reporters that Beijing has “good faith” in continuing talks and that “raising tariffs won't resolve any problem.” It said it hoped that the U.S. “can work with China to meet each other halfway.”

    The tariffs on $200 billion in imports from China were first imposed last year, in the largest of several rounds of U.S tariffs. ACC estimates that total U.S. tariffs on $250 billion in Chinese imports thus far include more than $15 billion in chemicals and plastics.

    ACC said Beijing's retaliation to those tariffs has also hit nearly $11 billion in U.S. chemical and plastics exports to China and have put 55,000 America jobs and $18 billion in U.S. economic activity at risk.

    'Eroding ... competitiveness'

    ACC President and CEO Cal Dooley said in a statement that China is the third-largest export market for the U.S. chemical industry, and that the trade war is hurting the industry. Beijing has said it will respond to the U.S. tariffs but did not give specifics.

    “We are starting to see signs that the tariffs are disrupting supply chains, cutting off markets, and eroding U.S. chemical manufacturing competitiveness,” Dooley said. “Although chemical imports from China grew by 22.7 percent in 2018, the retaliatory tariffs significantly dampened U.S. chemical exports to China, resulting in only a 2.7 percent increase in 2018 — nearly tripling the chemicals trade deficit, from $1.4 billion to $4.0 billion.”

    Dooley said that the U.S. chemical sector, including plastics materials makers, prefer other solutions to trade problems with China, rather than tariffs and counter-tariffs.

    “Future growth for our industry depends on a strong trading relationship with China and a trade policy that creates certainty and predictability for investors, not a looming threat of more or higher tariffs,” Dooley said.

    The Society of Chemical Manufacturers & Affiliates said in a statement that raising the tariffs to 25 percent will “disproportionately burden specialty chemical manufacturers,” in part because the industry is very globally integrated.

    It said that “in many cases China is the sole supplier of raw materials and building block chemicals” and noted that nearly half of the products removed from the initial U.S. tariff list after industry petitions were chemicals. Companies can continue to file those petitions.

    “These sectors are thriving but cannot continue to sustain the volatility introduced by these actions,” said Jennifer Abril, SOCMA president and CEO.

    This $200 billion round of tariffs also includes duties on some categories of plastic products, including vinyl flooring and some types of plastic packaging and closures. U.S. packaging maker Pactiv LLC had lobbied for tariffs.

    Several large U.S. makers of vinyl flooring had urged Washington to impose the tariffs, saying it would benefit investment in U.S. factories. But other companies and importers argued it would raise home construction costs.

    These are not the only tariffs on plastics industry goods. Tariffs on Chinese made injection molding machines, also at 25 percent, were imposed in an earlier round of tariffs last year.

    The $200 billion at issue now first were imposed in September. Originally, the 10 percent duties were supposed to rise to 25 percent on Jan. 1 but that had been delayed while talks continued.

    As well, 25 percent tariffs on Chinese-made injection molds, first imposed in July, were lifted in January after protests from U.S. mold buyers.

    The U.S. traditionally maintains trade deficits with China in plastics products, machinery and molds, and has a surplus in resins. In 2017, the resin surplus was $2.9 billion, while the product deficit was $13.6 billion.

    Trump also threatened in comments on Twitter to impose tariffs on the remaining Chinese imports, estimated at $325 billion.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    logo-pn-color
    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber & Plastics News
    • Urethanes Technology
    • Plastics News China
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • What Keeps You Up At Night
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
        • Polymer Points Live
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • FYI Charts
        • Current FYI
      • LSR World
      • Multimedia
        • Videos
        • Galleries
        • Podcasts
      • NPE2021
      • K Show
      • ENGEL Sponsored Content
      • Special Reports
        • CEO Issue
        • Best Places to Work
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
    • Opinion
      • The Plastics Blog
      • Kickstart
      • Heavy Metal
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • Perspective
      • Mailbag
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Plastics in Automotive
        • Plastics News Caps & Closures
        • Plastics in Healthcare
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Livestreams/Webinars
      • Ask the Expert
      • Polymer Points Live
      • Reifenhäuser Technologies Livestreams
      • 2020 Caps & Closures Library
      • Plastics in Healthcare Library
      • Women Breaking the Mold Networking Forum Library
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Data Store
    • Directory
    • More+
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified
      • Digital Edition
      • Newsletters
      • Sponsored Content
      • Processor of the Year submissions
      • White Papers