The US President Donald Trump recently announced that the US will enforce tariffs on $200bn worth of imports from China, which mainly include plastics and petrochemicals. The tariff is effectively from 24 September, initially it will start with 10%, which rise to 25%, by 1 January.
He threatened that if China takes what the administration considers to be retaliatory actions, then another round of tariffs worth $267bn will imposed on imports. In response of this China has threatened to strike back with its own list of 5-25% tariffs on $60bn worth of imports from the US, many of which also contain chemicals. Addition to this, China has submitted an appeal to World Trade Organization (WTO) for authorisation to impose over $7bn of authorizations annually on the US.
Last year, the US and China have escalated trade war situation by increasing number of tariffs on goods they import from each other. This resulted the entire chemical industry on the front line of an intensifying trade war.
However, The American Chemistry Council (ACC) insistently opposed the tariffs, claiming they will set billions of US dollars and thousands of workers at risk. The National Association of Chemical Distributors (NACD) recently published the results of study that it said quantified the costs of additional tariffs to distributors.
A recent act will provide chemical companies with some relief from existing tariffs. Trump said his administration is imposing the tariffs because of what he alleged to be unfair policies and practices involving how it treats US technology and intellectual property. He accused China of forcing US companies to transfer technology to their counterparts in the country.
– Khushboo Pandey,