ACC: Chemical Tariffs Could Cause “Irreparable” EffectsACC: Chemical Tariffs Could Cause “Irreparable” Effects

The American Chemistry Council (ACC) warned U.S. policymakers on Monday that impacts from tariffs on chemicals and plastics imported from China may cause negative “long-term consequences” for the domestic chemicals industry that could position the Asian nation to become the world’s largest supplier of chemicals. 

Calling on President Donald J. Trump’s administration to remove 1505 chemicals and plastics from its “List 3” of tariffs, and 152 chemicals from “List 2,” the organization maintains that the measures would cause prices to go up for U.S. chemicals firms and end-users of U.S.-made chemical products like manufacturers and agricultural producers. 

“If tariffs on the $2.2 billion in chemicals and plastics imports that appeared on List 2 would weaken the competitiveness of the U.S. chemicals industry, then the $16.4 billion in tariffs on additional products of chemistry in List 3 would have potentially irreparable impact on our industry’s economic structure and supply chain,” ACC Director of International Trade Ed Brzytwa said in a press release. “We reiterate, in the strongest possible terms: the best way to preserve the interests of the U.S. chemicals industry and indeed the entire manufacturing sector is by removing chemicals from the front lines of this trade war.”

Brzytwa testified at a July 25 hearing held by the Office of the U.S. Trade Representative on the tariffs that the Trump administration’s actions could negatively impact U.S. manufacturers by interrupting regular supply chains for chemicals and plastics products. 

“Supply chains are not plug-and-play – they cannot easily be reconfigured to meet the whims of U.S. trade policy,” Brzytwa said. “Supply chains do not exist in a vacuum but move with the ebb and flow of market forces. They are complex and intricate and rely on interconnected networks and channels that work together as one to bring finished products to market. Forcing companies to reconfigure their supply chains would threaten the viability of their businesses.”

The organization urged the Trump administration to work with “like-minded Allies” to reconcile its differences with China instead of waging a trade war.

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