China sets up to 74.9% tariffs on key plastic from the U.S., EU, Japan and Taiwan

 China has announced the imposition of antidumping tariffs on imports of POM copolymers, a type of engineering plastic, from the United States, the European Union, Japan, and Taiwan. The tariffs, reaching up to 74.9%, were announced on May 18, 2025, and took effect immediately. This move targets a material used in various applications, including automotive parts, electronics, and medical equipment, which can partially replace metals like copper and zinc.

The United States faces the highest antidumping rates, with tariffs reaching up to 74.9%. European shipments encounter tariffs of 34.5%, while Japan's imports are subject to a 35.5% rate, except for Asahi Kasei Corp, which received a specific company rate of 24.5%. Taiwan's imports face a general tariff of 32.6%, although Formosa Plastics and Polyplastics Taiwan benefit from lower rates of 4% and 3.8%, respectively.

This decision by China's Ministry of Commerce follows an investigation launched in May 2024. The investigation began shortly after the United States significantly increased tariffs on Chinese products, including electric vehicles and computer chips. In January, preliminary antidumping measures were implemented, requiring deposits from importers. The ministry's findings confirmed the occurrence of dumping, leading to the current tariff imposition.

Official announcement

The announcement was made by Li Chenggang, China's International Trade Representative and Vice Minister of Commerce. The ministry emphasized the diverse applications of POM copolymers and their potential to replace metals, underscoring the strategic importance of this material in various industries.

This tariff imposition occurs amid ongoing trade tensions between the United States and China. Despite hopes for a reduction in tariffs following a 'truce' agreement, the cumulative impact of previous tariffs remains a challenge for U.S. importers. Reports suggest skepticism regarding the full impact and duration of subsequent negotiations, with Japan's opposition to U.S. tariffs also posing a potential threat to a broader trade agreement.

Implications for global trade

The decision to impose these tariffs highlights the complex dynamics of global trade relations. As major economies navigate these challenges, the impact on industries reliant on POM copolymers could be significant. Companies may need to reassess supply chains and explore alternative materials or sources to mitigate the effects of these tariffs.

Industry stakeholders are closely monitoring the situation, with some expressing concern over the potential cost increases and supply chain disruptions. The tariffs could lead to higher prices for end products, affecting consumers and businesses alike. Companies may also face increased pressure to innovate and find cost-effective solutions to maintain competitiveness in the global market.

As the situation evolves, the focus will be on how affected countries respond to these tariffs and whether further negotiations can lead to a resolution. The outcome of these trade dynamics will likely influence future policy decisions and shape the landscape of international trade in the coming years.

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