In response to the administration’s announcement that it will impose 10% percent tariffs on an additional $200 billion in Chinese imports, American Chemistry Council (ACC) President and CEO Cal Dooley issues the following statement:
“There is no acceptable tariff rate for global chemicals trade with China or any U.S. trading partner. Only zero tariffs will maximize our industry’s potential to deliver innovative products to new regions and increase social, environmental, and economic sustainability around the world.
“Total chemicals trade between the U.S. and China has grown steadily over the years, and manufacturers in both countries depend on doing business together in order to stay competitive in the global marketplace. With the right trade policies in place, both countries can win. Achieving robust intellectual property protections should also be a priority, but ACC believes those concerns are better addressed with multi-lateral support and swift resolve on the part of the World Trade Organization.
“In the U.S., we recently reached a milestone with $202.4 billion in announced new chemical industry investment across 333 projects. China’s retaliatory tariffs on $11 billion in U.S. chemicals and plastics exports now put nearly 55,000 American jobs and $18 billion in domestic activity in question as a result of reduced demand for those products. Tariffs and quotas unnecessarily raise costs, deter innovation and economic growth, and could ultimately weaken our country’s competitive advantage.
“ACC and our members value cooperation and trade with our Chinese partners and we are ready to assist the Administration in setting a course that helps eliminate trade-distorting policies and that promotes the competitive success of the U.S. chemicals industry.”
ACC’s analysis of the final List 3’s impact on the U.S. chemicals sector finds that:
- 142 chemicals/plastics products (includes two plastics products) were removed from the final U.S. List 3.
- 1,363 chemicals/plastics products are still on the final List 3 (including 53 plastic products). Their value in terms of 2017 U.S. imports is $12.9 billion. The original List 3 included 1,505 chemicals and plastics products valued at $16.4 billion.
- At the 10% tariff level, $1.3 billion in tariffs will be paid to the U.S. government. At the 25% level, $3.2 billion that will be levied.
- Across all U.S. lists 1-3, a total 1,516 chemicals/plastic products will face additional tariffs when imported from China. The value of these products in terms of 2017 U.S. imports is $15.1 billion.
For more information, visit: www.americanchemistry.com