WASHINGTON-The Trump government's intention to impose tariffs on fluorine polymers imported from China may have a ' rather negative ' impact on U.S.-related industries, weakening the industry's trade surplus with China and possibly bringing back the promised investment, the industry official said in a hearing held in Washington July 24. Several companies and industry groups attended the U.S. government's hearings against the government's plan to impose a 25% tariff on China's multiple brands of fluoropolymer imports.
They said at a special multi-agency hearing convened by the United States Trade Representative that this would exacerbate the global shortage of fluoropolymer materials. The U.S. government wants to impose tariffs on Chinese goods to force the Chinese government to crack down on IPR infringement, mandatory technology transfer and other unfair business practices.
But many fluoropolymer industry executives say their industry should not be a target. Richard Baillie, of Delaware State Baillie Advanced Materials, on behalf of the Fluoropolymer Trade union, said: ' If the increase in tariffs on PTFE and other fluorine-polymer products from China, it would be harmful to the domestic plastics processing industry in the United States, Varying degrees of negative impact. The imposition of tariffs could affect American employment, expand current supply shortages and threaten our trade surplus.
Barry, who has been a senior executive at DuPont for many years and has been president of the Plastics Industry Association Fluoropolymer Branch, has not spoken on behalf of the association. He said last year the U.S. fluorine polymer industry and China's trade surplus is 15 million U.S. dollars, this year may reach 21 million U.S. dollars. He said: ' We currently have a surplus of trade with China, which is proof that the US fluoropolymer industry is now strong and growing.
' He pointed out that some of the tariffs could worsen the industry or bring specific challenges.
He said the fluoropolymer industry is currently facing a global shortage of materials, and if tariffs are imposed, it would be bad for American companies that use fluoro polymers as feedstock. He pointed out that China currently has more than half of the world's production capacity, and has the fluorine ore can be used to produce fluorine polymers required by fluorine. ' China is now a very important trading partner.
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The government's hearing from July 24 to 25th was attended by a total of 80 people from all walks of life, Baillie with several other representatives of Fluoropolymer manufacturers.
The United States, a U.S. subsidiary of Japan's great Gold Industry Co., said at the hearing that the imposition of tariffs on China's imports of fluorinated polymers could hurt future investments in the United States.
The company currently has a new product (the fluorine melts the tree ester) to use in the data communication market, imports from the Chinese tree ester plant, then carries on the further mixing processing in the big gold in the Massachusetts small plant. The company wants to shift production to a large factory in Alabama side cut, but its capacity is now saturated and new investments are needed to expand it. Gary, deputy general manager of the U.S. Business Development Department of Grand Gold.
Stantis said that the new investment is part of an expansion plan that the company is currently studying to add a total of 200 million dollars to the side cut plant, which must first establish a share of new materials in the US market, but it will be difficult to operate if the tree esters imported from Chinese factories need to pay 25% more tariffs. The company submitted an official document to the U.S. government, saying ' it intends to transfer the production of these products to the United States, which, like other products, requires new production processes and a significant amount of investment. ' But that can only happen if we can build a customer base and we can support our expansion plans when the profits produced in the United States are supported.
' Baillie after the hearing, said in an interview with The Economist, the situation is not a case of big gold.
He said that there were other companies in the U.S. fluoro-polymer manufacturing chain threatened by the tariff policy, and they were studying whether to move production to Canada or Mexico to avoid the 25% tariff increases and maintain a competitive advantage over other countries without having to confront the Sino-US tariff conflict. Baillie said: ' All companies are thinking, how do we deal with it? We can only reinvest, transfer factories to Mexico, or move to Canada, and if we move outside the U.S. border, we don't have to pay those tariffs to keep you competitive.
' Trump tariff policy or negative impact on the fluorine polymer industry