Urethane Blog

Tariffs Imposed

September 18, 2018

US to impose tariffs on $200bn worth of Chinese imports, may add more

18 September 2018 00:16 Source:ICIS News

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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