SOCMA: Increase in China Tariffs to Place Disproportionate Burden on Specialty Chemical Manufacturers
ARLINGTON, Va., May 9, 2019 /PRNewswire/ -- The Trump Administration's decision to raise tariff rates from 10 to 25 percent on $200 billion in Chinese imports will disproportionately burden specialty chemical manufacturers, according to a statement released today by the Society of Chemical Manufacturers & Affiliates (SOCMA).
The U.S. Trade Representative (USTR) notice for the tariff increase, which goes into effect at 12:01 a.m. Friday, May 10, was published in today's Federal Register.
Specialty chemical supply chains are particularly dependent on China because in many cases China is the sole supplier of raw materials and building block chemicals. The fact that chemical tariff lines made up nearly half of the delistings for List 3 speaks volumes regarding the degree to which certain inputs are simply unavailable outside of China at reasonable costs and in sufficient quantities, if at all.
"While SOCMA supports the Administration's end goal of zero tariffs and improved IP protection in China, a 25 percent tariff on $250 billion in Chinese imports will place a significant burden on our members and the industry," said Jennifer Abril, President and CEO of SOCMA. "Whether it is pigments, agrochemicals, or pharmaceuticals, specialty chemicals are vital inputs to critical sectors of American industry. These sectors are thriving but cannot continue to sustain the volatility introduced by these actions. We have illustrated the interdependency of these supply chains to USTR at every opportunity and have stressed the need for a product exclusion request process for List 3. The promised exclusion process in today's Federal Register notice acknowledges this, and SOCMA looks forward to working with the Administration towards an expeditious and transparent process for evaluating List 3 exclusion requests."
To date, the U.S. has levied tariffs on 1,517 Chinese-origin chemical products valued at roughly $15.4 billion. China has levied retaliatory tariffs on more than 1,000 chemical and plastics products valued at roughly $10.8 billion. As the U.S. and China negotiate the sequencing of tariff removal, SOCMA is proactively monitoring and advocating on behalf of the specialty chemical industry, particularly advocating for USTR to roll back tariffs on chemical products in Harmonized Tariff Schedule chapters 28, 29, 32, and 38, as soon as possible.
About SOCMA
SOCMA is part of a $300 billion industry that's fueling the U.S. economy. Our members play an indispensable role in the global chemical supply chain, providing specialty chemicals to companies in markets ranging from aerospace and electronics to pharmaceuticals and agriculture. www.socma.com.
SOURCE Society of Chemical Manufacturers & Affiliates
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