Retaliatory tariffs on US chem exports to China threaten $18bn in economic harm – ACC
The $11bn worth of tariffs on US chemical exports enacted by China put almost $18bn in domestic activity at risk along with nearly 55,000 US jobs, the American Chemistry Council (ACC) said on Thursday.
The projected impacts cover both proposed tariffs and those already enacted. They are showcased in an economics report, which the ACC published along with comments once again urging the administration of US President Donald Trump to remove 1,505 chemicals and plastics products from the US' third proposed tariff list of imported goods.
An analysis by the National Association of Chemical Distributors(NACD) on the third round of tariffs showed US chemical distributors would face $1.277bn worth of cost increases if the Trump administration moves forward.
The ACC listed two possible scenarios moving foward:
-The baseline, where Chinese importers face challenges to find alternative sources for US products
-The worst case scenario, where Chinese customers readily adjust supply chains to substitute for goods from the US.
Estimated losses for US chemicals and plastics exports to China would be equivalent to $1.6bn/year in the baseline, the ACC said. Under the worst case scenario, that number reaches $6.1bn/year.
“A trade war will neither achieve a more balanced trading relationship between the US and China nor advance the interests of the US economy, manufacturers and consumers,” ACC Director of International Trade Ed Brzytwa said. “We strongly urge the US government to avoid this action, rescind the tariffs currently in effect and therefore preempt additional retaliation by China.”
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