On June 15, the U.S. government issued a list of tariff-added goods, which will impose a tariff of 25% on approximately US$50 billion of goods imported from China, of which about US$34 billion will be implemented on July 6, 2018. To impose tariff measures and impose tariffs on about 16 billion U.S. dollars of goods at the same time began to solicit public opinions. The person in charge of the office of the Customs Tariff Commission of the State Council of China stated on June 16 that the Chinese side decided to impose the same level of taxation on the same amount of imported goods from the United States and defend its own legitimate rights and interests. The reporter scrutinized that a variety of energy and chemical products are on the list of both China and the United States.
US List: Highlights of Polymer Materials Taxation
On June 15th, the U.S. Trade Representative issued two lists of tariffs, including a list of approximately US$34 billion to be implemented on July 6th and an additional tariff assessment for approximately US$16 billion. List.
According to the statement made by the U.S. Trade Representative, the previous list contained a total of 818 items, all of which came from the US tax-exempt list of 1333 items announced in April. Among them, only two of the original 50 chemical products are still on the list, namely aircraft tires and retreaded tires. The latter list contains a total of 284 commodities. This list contains more petrochemical commodities, including three categories of mineral products, chemical industry and related industrial products, and plastics and their products. A total of 155 items are on the list. More than half of the total. Among them, 147 items of plastics and their products are listed, including all general-purpose plastics, most of engineering plastics, bio-materials, and renewable materials. Plastics products are almost all listed, and the field of polymer materials has become the key sign of the United States. Tax object. The other 8 items are lubricating oil and grease related products. According to estimates by the American Chemical Council, the value of these 155 commodities is approximately $2.2 billion.
Chinese countermeasures: Energy and chemical products are among them
In response to the US taxation initiative, the State Council Tariff Commission issued an announcement that it must impose a tariff of 25% on 659 items of US$50 billion imported from the United States, of which 545 items such as agricultural products, automobiles, and aquatic products should be approximately US$34 billion. The goods will be imposed with tariffs from July 6, 2018, and the implementation time of the additional tariffs will be announced separately.
In the Chinese countermeasures list, of the 545 taxable goods that will be implemented on July 6th, there are no energy and chemical products, but among the 114 commodities that were announced separately at the implementation time of tariffs, energy and petrochemical products accounted for 108 items. Among them, energy products, coal, crude oil, coke and other raw materials commodities and gasoline, diesel and other refined oil products are listed, liquefied propane, liquefied butane and liquefied olefins and other chemical raw materials are also among them. Chemical products include acrylonitrile, 1,2-dichloroethane, lubricants, and some pesticides. Polyethylene, polyvinyl chloride, polycarbonate, polyamide, and other resins are also among them.
US Chemical Industry: Disappointed with US Government Policy
On June 15, the American Chemistry Council (ACC) issued a statement calling on relevant departments to take effective measures to protect the US chemical industry from trade friction.
The statement stated that the association is disappointed with the U.S. government’s policies. The ACC believes that the government has now placed the US chemical manufacturing industry directly at the frontline of this conflict with China and has not listened to the industry’s demands. The ACC called for the U.S. trade representative office and other agencies to be able to listen to the opinions and concerns of the chemical industry in the coming weeks to prevent further escalation of the situation.
The ACC emphasizes that 96% of manufactured products in the United States involve chemicals and form the basis of the entire North American supply chain. Thanks to the low cost of raw materials and chemical production facilities, the chemical industry has become one of the largest export industries in the United States, accounting for 14% of total US exports. On the other hand, China is one of the most important trading partners of the US chemical industry. In 2017, China’s total imports accounted for 11% of all plastic resins in the United States, or US$3.2 billion.
The ACC warns that trade frictions will damage US production. Trade frictions will cause a drop in chemical demand. Up to 24,000 jobs in chemical and downstream industries in the United States will be lost. Half of the $ 940 billion chemical industry investment plans in the United States may be postponed or abandoned. Cause global market fluctuations