The Impact of Tariffs on Chemicals and Plastics Industries
There has been a lot news lately surrounding the rapidly expanding list of raw materials which may or may not be impacted by American or Chinese import tariffs. The stock markets around the globe have been bouncing up and down as new reports of potentially affected products stream in. In this blog we’ll explore the potential impact on the chemicals and plastics industries.
Potential Industries Impacted
The bulk of the concern has been in the agricultural sector, primarily, pork and soybeans. These proposed tariffs if enacted, however, would also have an impact on other industries, as well. The Society of Chemical Manufacturers and Affiliates (SOCMA) has issued a report that Chinese tariffs would have some impact on the chemical industry.
A SOCMA statement noted that products commonly imported from China include “polyethylene used in oil and gas, epoxy resins used in coatings and adhesives, to sulfates/sulfonates in home and cleaning products.”
How serious is all this?
Chinese Import Tariffs
At this point, the impact of Chinese import tariffs is speculation. While the proposed tariffs do merit some concern, nothing has been officially enacted. As it stands right now, there isn’t a trade war and there aren’t any new tariffs. So far, this has all been a war of words.
The American administration is concerned about what they see as an unfair advantage towards China when it comes to importing products. In an effort to offset this, the current administration is proposing ideas out there regarding import tariffs to level the playing field. China is responding in kind with a host of tariffs they say they are willing to impose on the products it imports from the United States.
The reality is that China has 1.7 trillion invested in the American economy and has an awful lot at stake if this debt would for some reason, be defaulted. The US, on the other hand, can’t afford to lose all the great, inexpensive consumer items and wholesale products they import from China.
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