As the trade war between China and the United States escalates, the latest list of tariffs imposed on Chinese imports is sure to shake up the chemical industry and those who depend on chemical raw materials in their manufacturing. The latest list contains many chemicals, chemical intermediates, and pharmaceutical precursors which will be subject to as much as a 25% tariff come September 1st if the tariffs are finalized. Without affordable domestic alternatives to some of these products, manufactures will no doubt have to absorb the added costs.
Notably, the list contains several plasticizers and plasticizer precursors. Sebacic acid is also included on the list.
The latest round of suggested tariffs remain open for public comments. The NACD has submitted comments to the Office of the United States Trade Representative (USTR) about the impact the tariffs will have on the chemical industry, and is pushing for the removal of a number of product categories. NACD President Eric R. Byer said, “Placing a 25 percent tariff on dozens of products NACD members import regularly from China will have a significant and negative impact on their ability to maintain growth and provide high-paying jobs. Our analysis shows that more than 530 chemical distribution jobs could be lost if tariffs on these goods are implemented. We urge the USTR to rethink their approach and remove the 44 chemical product codes NACD members import from China from their list of goods targeted for tariffs.”
The U.S. has indicated it is willing to engage in negotiations with China, however, the two sides do not seem willing to budge thus far. ChemCeed continues to monitor this unfolding situation, as well as plan for alternative supply chains in the event that the tariffs are imposed. Please ask your ChemCeed representative if you have questions about the impact on specific products in our line.