MOSCOW (MRC) -- Punitive measures imposed on China as a result of the U.S. Section 301 investigation have incited retaliatory tariffs on USD11 billion in U.S. chemicals and plastics exports and put nearly 55,000 American jobs and USD18 billion in domestic activity at risk as a result of reduced demand for those products, said Hydrocarbonprocessing.
The release of the new data coincides with ACC’s filing of public comments on U.S. ‘List 3’ and follows on the heels of testimony given in August by ACC Director of International Trade, Ed Brzytwa, in which ACC called on policymakers to remove all 1,505 chemicals and plastics products, valued at USD16.4 billion, from List 3.
"It’s unavoidable that China’s tariffs on U.S. chemicals and plastics exports will result in reduced demand for those exports," said Emily Sanchez, ACC director of economics and data analytics and chief author of the new report. “Depending on the elasticity of demand for U.S. products in China, the retaliatory tariffs could result in substantial losses for American producers, their employees, and for the communities that depend on the economic activity that workers in the chemicals and plastics industry generate."
ACC’s analysis presents two potential scenarios: a "baseline case," in which Chinese importers are more challenged to find alternative sources to U.S. products; and a “worst case,” where Chinese customers can more readily adjust their supply chains to substitute for U.S.-sourced goods. In the baseline case, ACC estimates that the loss in U.S. chemicals and plastics exports to China would be equivalent to USD1.6 billion annually. Losses to U.S. chemical and plastics exports could reach as high as USD6.1 billion annually under a worst-case scenario, according to ACC.
MRC