Perspective: Tariffs, The Art of the Deal and the plastics industry

The plastics industry is at a crossroads.

The United States' plastics industry remains a critical part of the national economy. In 2023, it accounted for more than 1 million jobs and reported $519.1 billion in shipments.

The industry also maintained a $958 million trade surplus, with exports totaling $74.2 billion and imports at $73.3 billion. Preliminary data from 2024 suggests a $0.6 billion increase in exports for plastic materials in November alone, though full-year trade balance data is still forthcoming.

However, the growing threat of broad-based tariffs could disrupt this momentum. Large-scale tariffs can act as a brute force economic tool, damaging both jobs and trade balance stability. The plastics industry must proactively shape the conversation and negotiate better outcomes — a strategy well aligned with the principles from President Donald Trump's 1987 book, The Art of the Deal.

1. "I aim very high, and then I just keep pushing and pushing and pushing to get what I'm after."

Strategic Tariff Adjustments, Not Blanket Policies: Instead of accepting sweeping national tariffs — such as the proposed 25 percent tariffs on Mexico and Canada — the industry should push for targeted tariff negotiations, similar to how oil tariffs with Canada were tuned to avoid economic shock.

2. "The final key to the way I promote is bravado. I play to people's fantasies."

Controlling the Inflation Narrative: Tariffs on plastics could significantly raise production costs, potentially fueling inflation. The industry should amplify this concern in the media, framing it as a serious economic risk rather than a niche industry issue.

3. "Make them a deal, but keep them on edge."

Negotiating Trade Incentives: The plastics sector should offer alternative trade solutions to policymakers while ensuring that uncertainty around economic consequences remains front and center in negotiations.

To effectively counter the effects of tariffs, the plastics industry should take center stage and ensure the broader economic significance of plastics is understood. This means shifting the news cycle's focus from broad national trade issues to the direct, industry-specific consequences of tariffs.

Key strategies include:

• Preemptive framing: Shape the discussion before policy decisions are finalized, making sure stakeholders understand the industry's role in economic stability and job creation.

• Access to strong communication channels: Leverage industry leaders, trade associations and media platforms to ensure the plastics industry's concerns are heard in key policy discussions. The industry, gradually shedding its traditional reluctance, can embrace diverse new social media and creator channels to bring its news to the public.

• Demonstrating leadership: Industry executive leadership is needed in public forums, economic panels and media interviews to position plastics as an essential part of the supply chain that cannot be sidelined by broad tariff measures.

The plastics industry needs to lead an aggressive yet strategic approach to tariff challenges. By applying the deal-making tactics of The Art of the Deal, industry leaders can advocate for better trade policies, shape public perception and minimize economic disruption. Now is the time to own the narrative and ensure that plastics remain a key player in the U.S. economy's future stability.

Peter J. Schmitt is the managing director and co-founder of Montesino Associates LLC in Wilmington, Del.