In the recent period, the United States frequently announced tariff increases. Canada, Mexico, and the European Union are among them. In particular, the United States has announced that it will impose a 25% tariff on imports of about US$50 billion from China. Trade protection in the United States The behavior was followed by corresponding counterattacks from China, the European Union, and Mexico. The US chemical industry, which was placed on the frontline of the trade battle, agonized.
In the face of China's reciprocal tariff increase measures, a number of US national organizations including the US Chemical Industry Council and the American Chamber of Commerce have voiced their voices. The government has placed chemicals directly on the front line of the trade war, and nearly 100 billion US dollars of investment has been seriously threatened. The trade war is contrary to the trend of globalization. It can be described as harming others. It is not difficult to understand the current situation of industrial trade in the United States and the United States, as well as the trade between the United States and the countries around the United States.
Ninety-six percent of manufactured goods in the United States involve chemicals. The chemical industry is the foundation of the entire North American supply chain. Over the years, the US chemical industry has become one of the largest export industries in the United States by virtue of its raw material and project construction cost advantages. The United States has provoked a trade war. Inevitably, it is imperative to impose tariffs and counterattacks. The chemical industry can easily become a key target.
Other countries are aware of the importance of chemicals to the US economy. It is highly likely that US chemical manufacturers will take counter-attack measures to impose tariffs on raw materials, construction chemicals and some export commodities in the chemical consumption sector. The chain reaction is expected to make the United States uncomfortable for a while. Tariffs will put the market into a turbulent, unbalanced competitive environment. Supply chain operations, production, and outsourcing will be severely disrupted. The US is investing up to $194 billion in chemical industry investment plans. May be delayed or abandoned.
Moreover, the target targeted by the United States is mostly important trade partners in the past. For example, China is one of the most important trading partners of the US chemical industry. Only plastic resin, China’s imports in 2017 accounted for the total US exports. 11%, or $3.2 billion. The ACC warned the government that the trade war may only benefit China's growing industry, but it will harm the US's own interests. In the plastic resin industry, due to tariffs, US raw materials and chemical production facilities. The low-cost advantage is less obvious. China can rely on increasing domestic output to meet demand, and can also switch to other sources.
China can replace American goods, and other countries or regions can also, such as the European Union. A while ago, the United States is still lobbying the EU to buy US natural gas. Originally, other countries in this market are actively participating in the competition, thus, in the EU natural gas market. The United States may have to work harder.