HOUSTON (ICIS)–The US will impose tariffs on $200bn worth of imports from China, many of which include plastics and petrochemicals, President Donald Trump said on Monday.
The tariffs will go into effect on 24 September, and they will start at 10%, Trump said. On 1 January, the tariffs will rise to 25%.
If China takes what the administration considers to be retaliatory actions, then Trump threatened another round of tariffs on $267bn worth of additional imports, he said.
China has threatened to retaliate with its own list of 5-25% tariffs on $60bn worth of imports from the US, many of which also include chemicals.
In addition, China has submitted a request to World Trade Organization (WTO) for authorisation to impose over $7bn of sanctions annually on the US.
During the past year, the US and China have placed an increasing number of tariffs on goods they import from each other, placing the chemical industry on the front line of an escalating trade war.
The American Chemistry Council (ACC) persistently opposed the tariffs, alleging they will put 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.
Many of the new polyethylene (PE) plants that are now starting up in the US were built with the intent of exporting much of their output. Demand in the US will unlikely grow fast enough to absorb all of this new capacity, and companies always intended to export much of the PE to fast-growing emerging economies, particularly China.
The tariffs complicate this strategy at a time when integrated margins for PE producers have been falling as new capacity starts up.
On the other hand, many executives said the tariffs will cause trade patterns to shift, but they should not cause widespread disruption. Demand for PE will continue to grow and markets will need new capacity. This is illustrated by utilisation rates, which remain high despite new plants starting up in the US.
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.
The table below shows some of the chemical and plastic products covered by the $200bn list of tariffs.
HTS | Product Description |
2707.10.00 | Benzene, from distillation of hi-temp coal tar or in which wt. of aromatic components o |
2707.20.00 | Toluene, from distillation of hi-temp coal tar or in which wt. of aromatic components o |
2707.30.00 | Xylenes, from distillation of hi-temp coal tar or in which wt. of aromatic components o |
2707.99.51 | Phenols > 50% by wt hydroxybenzene |
2707.99.59 | Phenols, nesoi |
2710.12.25 | Naphthas (exc. motor fuel |
2710.12.45 | Light oil mixt. of hydrocarbons fr petro oils & bitum min(o |
2710.12.90 | Light oils and preparations from petroleum oils & oils from bituminous min. or preps 70%+ by wt. from petro. oils or bitum. min., nesoi |
2710.19.06 | Distillate and residual fuel oil (including blends) derived from petroleum or oils from bituminous minerals, testing < 25 degrees A.P.I. |
2710.19.11 | Distillate and residual fuel oil (including blends) derived from petroleum oils or oil of bituminous minerals, testing 25 degree A.P.I. or > |
2710.19.16 | Kerosene-type jet fuel from petroleum oils and oils of bitumin minerals (o |
2710.19.24 | Kerosene motor fuel (not jet) from petro oils and bitumin minerals (o |
2710.19.25 | Kerosene motor fuel blending stock (not jet), from petro oils and bitumin. minerals (o |
2710.19.26 | Kerosene (ex. motor fuel |
2710.19.45 | Mixture of hydrocarbons from petro oils & bitum. min. or preps.70%+ by wt. fr. petro. oils, nesoi, n |
2710.19.90 | Petroleum oils & oils from bituminous minerals or preps nesoi 70%+ by wt. from petroleum oils or bitum. min., not waste, nesoi |
2710.20.05 | Dist and resid fuel oil (including blends) derived from petro or oils fr bitum min, testing under 25 degrees A.P.I., contng biodiesel |
2710.20.10 | Dist and resid fuel oil (including blends) derived from petro or oils fr bitum min testing 25 degree A.P.I. or >, contng biodiesel |
2710.20.15 | Kerosene-type jet fuel |
2710.20.25 | Kerosene (ex jet fuel,mtr ful |
2711.11.00 | Natural gas, liquefied |
2711.12.00 | Propane, liquefied |
2711.13.00 | Butanes, liquefied |
2711.14.00 | Ethylene, propylene, butylene and butadiene, liquefied |
2711.19.00 | Liquefied petroleum gases and other gaseous hydrocarbons, nesoi |
2711.21.00 | Natural gas, in gaseous state |
2711.29.00 | Petroleum gases and other gaseous hydrocarbons, except natural gas |
2712.20.00 | Paraffin wax (whether or not colored), obtained by synthesis or other process and less than 0.75% oil by wt. |
2712.90.10 | Montan wax (whether or not colored), obtained by synthesis or other process |
2814.10.00 | Anhydrous ammonia |
2814.20.00 | Ammonia in aqueous solution |
2815.11.00 | Sodium hydroxide (Caustic soda), solid |
2815.12.00 | Sodium hydroxide (Caustic soda), in aqueous solution (Soda lye or liquid soda) |
2901.10.10 | Ethane and butane |
2901.10.30 | n-Pentane and isopentane |
2901.21.00 | Ethylene |
2901.22.00 | Propene (Propylene) |
2901.23.00 | Butene (Butylene) and isomers thereof |
2901.24.10 | Buta-l,3-diene |
2901.24.20 | Isoprene, having a purity of 95 percent or more by weight |
2901.24.50 | Isoprene less than 95 percent pure |
2902.11.00 | Cyclohexane |
2902.20.00 | Benzene |
2902.30.00 | Toluene |
2902.41.00 | o-Xylene |
2902.42.00 | m-Xylene |
2902.43.00 | p-Xylene |
2902.44.00 | Mixed xylene isomers |
2902.50.00 | Styrene |
2902.60.00 | Ethylbenzene |
2902.70.00 | Cumene |
2902.90.30 | Alkylbenzenes and polyalkylbenzenes |
2903.15.00 | 1,2-Dichloroethane (Ethylene dichloride) |
2903.19.05 | 1,2-Dichloropropane (Propylene dichloride) and dichlorobutanes |
2903.21.00 | Vinyl chloride (Chloroethylene) |
2905.11.10 | Methanol (Methyl alcohol) imported only for use in producing synthetic natural gas (SNG) or for direct use as a fuel |
2905.11.20 | Methanol (Methyl alcohol), other than imported only for use in producing synthetic natural gas (SNG) or for direct use as fuel |
2905.12.00 | Propan-1-ol (Propyl alcohol) and Propan-2-ol (isopropyl alcohol) |
2905.13.00 | Butan-1-ol (n-Butyl alcohol) |
2905.14.10 | tert-Butyl alcohol, having a purity of less than 99 percent by weight |
2905.14.50 | Butanols other than butan-1-ol and tert-butyl alcohol having a purity of less than 99 percent by weight |
2905.31.00 | Ethylene glycol (Ethanediol) |
2905.32.00 | Propylene glycol (Propane-1,2-diol) |
2905.39.10 | Butylene glycol |
2909.19.14 | Methyl tertiay-butyl ether. (MTBE) |
2909.19.18 | Ethers of acyc monohydric alcohols & deriv, nesoi |
2909.43.00 | Monobutyl ethers of ethylene glycol or of diethylene glycol |
2909.44.01 | Monoalkyl ethers of ethylene glycol or of diethylene glycol |
2909.49.20 | Nonaromatic glycerol ethers |
2910.10.00 | Oxirane (Ethylene oxide) |
2910.20.00 | Methyloxirane (Propylene oxide) |
2910.30.00 | 1-Chloro-2,3-epoxypropane (Epichlorohydrin) |
2910.90.10 | Butylene oxide |
2910.90.20 | Aromatic epoxides, epoxyalcohols, epoxyphenols and epoxyethers, with a three-membered ring, and their derivatives, nesoi |
2910.90.91 | Other nonaromatic epoxides, epoxyalcohols and epoxyethers, with a three-membered ring and their halogenated, sulfonated, nitrated or nitrosated deriv |
2911.00.10 | 1,1-Bis-(1-methylethoxy)cyclohexane |
2911.00.50 | Acetals and hemiacetals, whether or not with other oxygen function, and their halogenated, sulfonated, nitrated or nitrosated derivatives |
2912.11.00 | Methanal (Formaldehyde) |
2912.12.00 | Ethanal (Acetaldehyde) |
2912.19.25 | Butanal (Butyraldehyde, normal isomer) |
2912.19.40 | Isobutanal |
2912.19.50 | Acyclic aldehydes without other oxygen function, nesoi |
2914.11.10 | Acetone, derived in whole or in part from cumene |
2914.11.50 | Acetone, not derived in whole or in part from cumene |
2914.12.00 | Butanone (Methyl ethyl ketone) |
2914.13.00 | 4-Methylpentan-2-one (Methyl isobutyl ketone) |
2914.22.10 | Cyclohexanone |
2914.22.20 | Methylcyclohexanone |
2914.23.00 | Ionones and methylionones |
2915.11.00 | Formic acid |
2915.12.00 | Salts of formic acid |
2915.13.10 | Aromatic esters of formic acid |
2915.13.50 | Nonaromatic esters of formic acid |
2915.21.00 | Acetic acid |
2915.24.00 | Acetic anhydride |
2915.31.00 | Ethyl acetate |
2915.32.00 | Vinyl acetate |
2915.33.00 | n-Butyl acetate |
2915.60.50 | Butyric acids, valeric acids, their nonaromatic salts and esters |
2915.70.01 | Palmitic acid, stearic acid, their salts and esters |
2915.90.10 | Fatty acids of animal or vegetable origin, nesoi |
2915.90.14 | Valproic acid |
2915.90.18 | Saturated acyclic monocarboxylic acids, nesoi |
2915.90.20 | Aromatic anhydrides, halides, peroxides and peroxyacids, of saturated acyclic monocarboxylic acids, and their derivatives, nesoi |
2915.90.50 | Nonaromatic anhydrides, halides, peroxides and peroxyacids, of saturated acyclic monocarboxylic acids, and their derivatives, nesoi |
2916.11.00 | Acrylic acid and its salts |
2916.12.10 | Aromatic esters of acrylic acid |
2916.12.50 | Nonaromatic esters of acrylic acid |
2916.13.00 | Methacrylic acid and its salts |
2916.15.10 | Oleic, linoleic or linolenic acids |
2916.15.51 | Salts and esters of oleic, linoleic or linolenic acids |
2917.12.10 | Adipic acid |
2917.12.20 | Plasticizers of adipic acid salts and esters |
2917.12.50 | Adipic acid salts and esters, nesoi |
2917.14.10 | Maleic anhydride derived in whole or in part from benzene or other aromatic hydrocarbons |
2917.14.50 | Maleic anhydride, except derived in whole or in part from benzene or other aromatic hydrocarbons |
2917.19.23 | Maleic acid |
2917.19.27 | Succinic acid, glutaric acid, and their derivatives, and derivatives of adipic, fumeric and maleic acids, nesoi |
2917.32.00 | Dioctyl orthophthalates |
2917.33.00 | Dinonyl or didecyl orthophthalates |
2917.34.01 | Esters of orthophthalic acid, nesoi |
2917.35.00 | Phthalic anhydride |
2917.36.00 | Terephthalic acid and its salts |
2917.37.00 | Dimethyl terephthalate |
2917.39.15 | Isophthalic acid |
2917.39.20 | Plasticizers of aromatic polycarboxylic acids, their anhydrides, halides, peroxides, peroxyacids and their derivatives |
2917.39.30 | Aromatic polycarboxylic acids, their anhydrides, halides, peroxides, peroxyacids and their derivatives nesoi, in add. U.S. note 3 to sec. VI |
2917.39.70 | Other aromatic polycarboxylic acids and their derivatives (excluding those described in additional US note 3 to section VI |
2918.11.10 | Lactic acid |
2918.11.51 | Salts and esters of lactic acid |
2921.19.11 | Mono- and triethylamines; mono-, di-, and tri(propyl- and butyl-) monoamines; salts of any of the foregoing |
2921.22.05 | Hexamethylenediamine adipate (Nylon salt) |
2921.22.10 | Hexamethylenediamine and its salts (except Nylon salt), derived in whole or in part from adipic acid |
2921.22.50 | Hexamethylenediamine and its salts (except Nylon salt), not derived in whole or in part from adipic acid |
2921.29.00 | Acyclic polyamines, their derivatives and salts, other than ethylenediamine or hexamethylenediamine and their salts |
2921.59.40 | Aromatic polyamines and their derivatives and salts thereof, described in additional U.S. note 3 to section VI |
2921.59.80 | Aromatic polyamines and their derivatives; salts thereof nesoi |
2922.11.00 | Monoethanolamine and its salts |
2922.12.00 | Diethanolamine and its salts |
2922.15.00 | Triethanolamine |
2926.10.00 | Acrylonitrile |
2929.10.10 | Toluenediisocyanates (unmixed) |
2929.10.15 | Mixtures of 2,4- and 2,6-toluenediisocyanates |
2929.10.35 | 1,6-Hexamethylene diisocyanate |
2929.10.55 | Isocyanates of products described in additioonal U.S. note 3 to sect VI |
2929.10.80 | Other isocyanates, nesoi |
2933.61.00 | Melamine |
3101.00.00 | Animal or vegetable fertilizers; fertilizers produced by the mixing or chemical treatment of animal or vegetable products |
3102.10.00 | Urea, whether or not in aqueous solution |
3102.21.00 | Ammonium sulfate |
3102.29.00 | Double salts and mixtures of ammonium sulfate and ammonium nitrate |
3102.30.00 | Ammonium nitrate, whether or not in aqueous solution |
3102.40.00 | Mixtures of ammonium nitrate with calcium carbonate or other inorganic nonfertilizing substances |
3102.50.00 | Sodium nitrate |
3102.60.00 | Double salts and mixtures of calcium nitrate and ammonium nitrate |
3102.80.00 | Mixtures of urea and ammonium nitrate in aqueous or ammoniacal solution |
3102.90.01 | Mineral or chemical fertilizers, nitrogenous, nesoi, including mixtures not specified elsewhere in heading 3102 |
3103.11.00 | Superphosphates containing by weight 35% or more of diphosphorous pentaoxide (P2O5) |
3103.19.00 | Superphosphates nesoi |
3103.90.01 | Mineral or chemical fertilizers, phosphatic |
3104.20.00 | Potassium chloride |
3104.30.00 | Potassium sulfate |
3104.90.01 | Mineral or chemical fertilizers, potassic, nesoi |
3105.10.00 | Fertilizers of chapter 31 in tablets or similar forms or in packages of a gross weight not exceeding 10 kg |
3105.20.00 | Mineral or chemical fertilizers nesoi, containing the three fertilizing elements nitrogen, phosphorus and potassium |
3105.30.00 | Diammonium hydrogenorthophosphate (Diammonium phosphate) |
3105.40.00 | Ammonium dihydrogenorthophosphate (Monoammonium phosphate), mixtures thereof with diammonium hydrogenorthophosphate (Diammonium phosphate) |
3105.51.00 | Mineral or chemical fertilizers nesoi, containing nitrates and phosphates |
3105.59.00 | Mineral or chemical fertilizers nesoi, containing the two fertilizing elements nitrogen and phosphorus |
3105.60.00 | Mineral or chemical fertilizers nesoi, containing the two fertilizing elements phosphorous and potassium |
3105.90.00 | Mineral or chemical fertilizers cont. two or three of the fertilizing elements nitrogen, phosphorus and potassium fertilizers, nesoi |
3206.11.00 | Pigments & preparations based on titanium dioxide containing 80 percent or more by weight off titanium dioxide calculated on the dry weight |
3206.19.00 | Pigments and preparations based on titanium dioxide, nesoi |
3208.10.00 | Paints and varnishes (including enamels and lacquers) based on polyesters in a nonaqueous medium |
3208.20.00 | Paints and varnishes (including enamels and lacquers) based on acrylic or vinyl polymers in a nonaqueous medium |
3208.90.00 | Paints and varnishes based on synthetic polymers or chemically modified natural polymers nesoi, in a nonaqueous medium |
3209.10.00 | Paints and varnishes (including enamels and lacquers) based on acrylic or vinyl polymers in an aqueous medium |
3209.90.00 | Paints and varnishes based on synthetic polymers or chemically modified natural polymers nesoi, in an aqueous medium |
3210.00.00 | Other paints and varnishes (including enamels, lacquers and distempers) nesoi; prepared water pigments of a kind used for finishing leather |
3211.00.00 | Prepared driers for paints and varnishes |
3401.11.10 | Castile soap in the form of bars, cakes or molded pieces or shapes |
3401.11.50 | Soap, nesoi; organic surface-active products used as soap, in bars, cakes, pieces, soap-impregnated paper, wadding, felt, for toilet use |
3401.19.00 | Soap; organic surface-active products used as soap, in bars, cakes, pieces; soap-impregnated paper, wadding, felt, not for toilet use |
3401.20.00 | Soap, not in the form of bars, cakes, molded pieces or shapes |
3401.30.10 | Organic surface-active products for wash skin, in liquid or cream, contain any aromatic |
3401.30.50 | Organic surface-active products and preparations for washing the skin, in liquid or cream form, put up for retail sale, nesoi |
3402.11.20 | Linear alkylbenzene sulfonates |
3402.11.40 | Anionic, aromatic or modified aromatic organic surface-active agents, whether or not put up for retail sale, nesoi |
3402.11.50 | Nonaromatic anionic organic surface-active agents (other than soap) |
3402.12.10 | Aromatic or modified aromatic cationic organic surface-active agents (other than soap) |
3402.12.50 | Nonaromatic cationic organic surface-active agents (other than soap) |
3402.13.10 | Aromatic or modified aromatic nonionic organic surface-active agents (other than soap) |
3402.13.20 | Nonaromatic nonionic organic surface-active agents (other than soap) of fatty substances of animal or vegetable origin |
3402.13.50 | Nonaromatic nonionic organic surface-active agents (other than soap), other than of fatty substances of animal or vegetable origin |
3402.19.10 | Aromatic or modified aromatic organic surface-active agents (other than soap) other than anionic, cationic or nonionic |
3402.19.50 | Nonaromatic organic surface-active agents (other than soap) nesoi |
3402.20.11 | Surface-active |
3402.20.51 | Surface-active, washing, and cleaning preparations nesoi, put up for retail sale, not of heading 3401 |
3402.90.10 | Synthetic detergents put up for retail sale |
3402.90.30 | Surface-active, washing, and cleaning preparations cont. any aromatic or modified aromatic surface-active agent, put up for retail sale |
3402.90.50 | Surface-active, washing, and cleaning preparations nesoi, put up for retail sale |
3506.10.50 | Products suitable for use as glues or adhesives, nesoi, not exceeding 1 kg, put up for retail sale |
3506.91.10 | Adhesive preparations based on rubber or plastics (including artificial resins), optically clear, for flat panel & touchscreen displays |
3506.91.50 | Other adhesive preparations based on rubber or plastics (including artificial resins) |
3506.99.00 | Prepared glues and other prepared adhesives, excluding adhesives based on rubber or plastics, nesoi |
3803.00.00 | Tall oil, whether or not refined |
3804.00.10 | Lignin sulfonic acid and its salts |
3805.90.10 | Pine oil containing alpha-terpineol as the main constituent |
3805.90.50 | Terpenic oils, nesoi, produced by treatment of coniferous woods; crude dipentene; sulfite turpentine and other crude para-cymene |
3806.10.00 | Rosin and resin acids |
3806.20.00 | Salts of rosin or of resin acids |
3806.30.00 | Ester gums |
3806.90.00 | Resin acids, derivatives of resin acids and rosin, rosin spirit and rosin oils, run gums, nesoi |
3807.00.00 | Wood tar and its oils; wood creosote; wood naphtha; vegetable pitch; preparations based on rosin, resin acids or vegetable pitch |
3811.90.00 | Prepared additives for mineral oils (incl. gasoline) or other liquids used for the same purposes as mineral oils, nesoi |
3812.10.10 | Prepared rubber accelerators containing any aromatic or modified aromatic rubber accelerator nesoi |
3812.10.50 | Prepared rubber accelerators not containing any aromatic or modified aromatic rubber accelerator nesoi |
3812.20.10 | Compound plasticizers for rubber or plastics containing any aromatic or modified aromatic plasticizer nesoi |
3812.20.50 | Compound plasticizers for rubber or plastics not containing any aromatic or modified aromatic plasticizer nesoi |
3812.39.60 | Compound plasticizers for rubber |
3812.39.70 | Bis(1,2,2,6,6-pentamethyl-4-piperidinyl) sebacate |
3812.39.90 | Antioxiding prep & oth compound stabilizers for rubber or plastics, nesoi |
3815.11.00 | Supported catalysts with nickel or nickel compounds as the active substance |
3815.12.00 | Supported catalysts with precious metal or precious metal compounds as the active substance |
3815.19.00 | Supported catalysts other than with nickel or precious metal or their compounds as the active substance |
3815.90.10 | Reaction initiators, reaction accelerators and catalytic preparations, nesoi, consisting wholly of bismuth, of tungsten or of vanadium |
3815.90.20 | Reaction initiators, reaction accelerators and catalytic preparations, nesoi, consisting wholly of mercury or of molybdenum |
3815.90.30 | Reaction initiators, reaction accelerators and catalytic preparations, nesoi, consisting wholly of inorganic substances nesoi |
3815.90.50 | Reaction initiators, reaction accelerators and catalytic preparations, nesoi |
3826.00.10 | Biodiesel not containing petroleum or bituminous oil |
3826.00.30 | Biodiesel containing <70% petroleum or bituminous oil |
3901.40.00 | Ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94 |
3912.11.00 | Cellulose acetates, nesoi, in primary forms, nonplasticized |
3912.31.00 | Carboxymethylcellulose and its salts |
4001.10.00 | Natural rubber latex, whether or not prevulcanized |
4001.21.00 | Natural rubber smoked sheets |
4001.22.00 | Technically specified natural rubber (TSNR), in primary forms |
4001.29.00 | Natural rubber in primary forms other than latex, smoked sheets or technically specified natural rubber (TSNR) |
4001.30.00 | Balata, gutta-percha, guayule, chicle and similar natural rubber gums, in primary forms |
4002.11.00 | Styrene-butadiene rubber (SBR) or carboxylated styrene-butadiene rubber (XSBR), latex, in primary forms or in plates, sheets or strip |
4002.19.00 | Styrene-butadiene rubber (SBR), carboxylated styrene-butadiene rubber (XSBR), except latex, in primary forms or in plates, sheets or strip |
4002.20.00 | Butadiene rubber (BR), in primary forms or in plates, sheets or strip |
4002.31.00 | Isobutene-isoprene (butyl) rubber (IIR), in primary forms or in plates, sheets or strip |
4002.39.00 | Halo-isobutene-isoprene rubber (CIIR or BIIR), in primary forms or in plates, sheets or strip |
4002.41.00 | Chloroprene (chlorobutadiene) rubber (CR), latex, in primary forms or in plates, sheets or strip |
4002.49.00 | Chloroprene (chlorobutadiene) rubber (CR), other than latex, in primary forms or in plates, sheets or strip |
4002.51.00 | Acrylonitrile-butadiene rubber (NBR), latex, in primary forms or in plates, sheets or strip |
4002.59.00 | Acrylonitrile-butadiene rubber (NBR), other than latex, in primary forms or in plates, sheets or strip |
4002.60.00 | Isoprene rubber (IR), in primary forms or in plates, sheets or strip |
4002.70.00 | Ethylene-propylene-nonconjugated diene rubber (EPDM), in primary forms or in plates, sheets or strip |
4002.80.00 | Mixtures of natural rubber gums with synthetic rubber, in primary forms or in plates, sheets or strip |
4002.91.00 | Synthetic rubber and factice derived from oils, in latex form, in primary forms or in plates, sheets or strip, nesoi |
4002.99.00 | Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip, nesoi |
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