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Home > News > Market Flash > The U.S. Imposes a 354.99% Tariff on Chinese Epoxy Resins! Over 40 Chemical Raw Materials Sanctioned!

The U.S. Imposes a 354.99% Tariff on Chinese Epoxy Resins! Over 40 Chemical Raw Materials Sanctioned!

ECHEMI 2024-11-26

Recently, the US Department of Commerce announced that it has made preliminary anti-dumping rulings on epoxy resins imported from China, India, South Korea, Thailand and Taiwan. A preliminary determination was made that Chinese producers/exporters had a dumping margin of 354.99% (margin ratio of 344.45% after subsidies), and a final anti-dumping ruling on related products from the Chinese mainland is expected on January 21 next year.

 

According to public information, China's epoxy resin production capacity is about 6 million tons, and there are still 1 million tons of capacity under construction. However, domestic demand does not exceed 1.7 million tons, if the export route is blocked, excess capacity will be difficult to be absorbed by the market. The implementation of anti-dumping measures, in addition to increasing tariffs, will also hinder the export of some domestic products, for China's chemical enterprises, this is undoubtedly a disaster.

 

More than 40 kinds of chemical products in China are subject to export restrictions.

 

In recent years, China's chemical products suffered frequent anti-dumping cases. India, the United States, South Korea, the European Union and other dozens of countries and regions, China's epichlorohydrin, titanium dioxide, resin, acetonitrile, pigments, pentaerythritol and other more than 40 kinds of chemical products to implement anti-dumping measures, the imposition of high tariffs has become the norm.

 

Country/Region

Product

Investigation/Decision Type

Specific Details

India

Sodium Citrate

Anti-dumping sunset review investigation

Second time

Epichlorohydrin

Affirmative anti-dumping final ruling

Imposing an anti-dumping duty of $0–216/ton on products from China for 5 years

Titanium Dioxide

Anti-dumping investigation

-

Pesticide

Includes any form of pesticide and its intermediates – 2,6-Diethyl-N-(2-propoxyethyl)aniline

Insoluble Sulfur

Originating from or imported from China and Japan

PVC Suspension Resin

Originating from or imported from mainland China, Indonesia, Japan, South Korea, Taiwan, Thailand, and the USA

Acetonitrile

Originating from or imported from mainland China, Russia, and Taiwan

Potassium t-Butoxide and Sodium t-Butoxide

Originating from or imported from China

Vitamin A Palmitate

Originating from or imported from China, the EU, and Switzerland

Azo Pigments

Originating from or imported from China

Chlorinated Polyvinyl Chloride

Affirmative final ruling in sunset review

First time, regardless of further processing into polymers

Pentaerythritol

Anti-dumping final ruling proposal

Originating from or imported from mainland China, Saudi Arabia, and Taiwan, imposing a 5-year anti-dumping duty

PVC Paste Resin

Preliminary anti-dumping ruling proposal

Originating from or imported from mainland China, South Korea, Malaysia, Norway, Thailand, and Taiwan; imposing a temporary anti-dumping duty for 6 months, $115–600/ton for mainland China

Polyether Polyols

Affirmative anti-dumping final ruling

Originating from or imported from China and Japan; $534/ton for Wanhua Chemical Group, $608/ton for other Chinese producers

Trichloroisocyanuric Acid

Preliminary anti-dumping ruling

Originating from or imported from China and South Korea; $650–870/ton for China

USA

Glycine

Affirmative final ruling in subsidy sunset review

First time, imported from China and India

Optical Brighteners

Rapid sunset review final ruling

Second time, imported from mainland China and Taiwan

Persulfates

Fifth time, imported from China

Vanillin

Preliminary subsidy ruling

Imported from China; tax rate of 27.33% for Jiaxing Guihua Chemical Import and Export Co., Ltd. and other Chinese producers

Sodium Nitrite

Rapid sunset review final ruling

Third time, imported from China

2,4-Dichlorophenoxyacetic Acid

Preliminary anti-dumping ruling

Imported from China and India; 17.07% for Taihe Co., Ltd. and Jiangxi Tianyu Chemical Co., Ltd. (margin after subsidy offset 16.44%), 127.21% for other Chinese producers/exporters (margin after subsidy offset 126.58%)

EU

Vanillin

Anti-dumping investigation

Originating from China

Polyethylene Terephthalate (PET)

Preliminary anti-dumping ruling

Originating from China; preliminary ruling to impose a temporary anti-dumping duty of 6.6%–24.2%

Choline Chloride

Anti-dumping investigation

Originating from China

Titanium Dioxide

Proposed temporary tariff

Originating from China; up to 39.7%, including five listed companies: Longbai Group, China Nuclear Titanium Dioxide, Jinpu Titanium Industry (Nanjing Titanium Dioxide), Anada, and Huilong Titanium Industry

Brazil

Polyether Polyols

Anti-dumping investigation

Originating from China and the USA; molecular weight between 300 and 4500 g/mol and purity equal to or greater than 90%

Phthalic Anhydride

Anti-dumping duty

Originating from China; temporary anti-dumping duty for no more than 6 months, $155.16–696.41/ton

Rutile-Type Titanium Dioxide

Anti-dumping investigation

Originating from China; products involved are rutile-type titanium dioxide pigments

Mexico

Rigid Polyvinyl Chloride

Affirmative anti-dumping final ruling

Imposing a 57.63% anti-dumping duty

Polyethylene Terephthalate (PET)

Preliminary anti-dumping ruling

Continuing anti-dumping investigation; imposing a temporary anti-dumping duty of 34%–63%

Styrene-Butadiene-Styrene Block Copolymer

Initiated anti-dumping investigation

-

South Korea

Styrene

-

PET Resin

Affirmative anti-dumping final ruling

Proposed imposition of a 5-year anti-dumping duty; tax rates of 7.00% and 7.98%

Pakistan

Chlorinated Paraffin

Initiated anti-dumping investigation

-

Saudi Arabia

Titanium Dioxide

Products involved are mainly used in paint, plastics, inks, rubber, etc.

Turkey

Polystyrene

-

Colombia

Manganese Sulfate

-

 

More than 30 countries have withdrawn most favored nation status from China, causing cost pressures to spread!

 

Such a wide range of "sanctions" and restrictive measures, for the export industry dominated by chemical products, may encounter the risk of export revenue reduction in the short term, but also affect the capital chain security and sustainable development of the industrial chain, so that the middle reaches of the chemical coating, plasticizing and downstream engineering, automotive industries simultaneously face a crisis. From 1995 to 2023, the total number of anti-dumping cases against China has reached 1,614. As of 2017, China has been the world's largest anti-dumping investigation country for 23 consecutive years, the world's largest countervailing investigation country for 12 consecutive years, becoming the "main victim of trade protectionism", the challenges facing the future are self-evident.

 

In addition to the increase in tariffs, China's export trade is also facing more severe challenges. Recently, the United States is working on a bill that could revoke China's permanent normal trade relations status and has mentioned the removal of China's most-favored-nation status. About 48% of China's total exports to the United States have been affected by additional tariffs, and the average export tariff rate is expected to rise significantly to more than 60%, affecting a number of segments such as machinery, parts, semiconductors and metal products, which will directly affect the price competitiveness of China's exports to the United States.

 

From 2021, Chinese goods exported to 32 countries including EU member states, the United Kingdom, Canada, Turkey and Ukraine will no longer enjoy preferential tariff treatment under the GSP, to the Trump period of frequent imposition of high tariffs on China and the coverage is expanding, and now dozens of countries have imposed anti-dumping on Chinese products and strictly control the export sales of China's chemical products. All these show that our country's export business situation is becoming increasingly severe. When the cost pressure increases, the enterprise will have to adjust the product price to pass on the capital pressure, cash flow risk will also make the enterprise can not focus on innovation, fall into a vicious circle of difficult development, and further accelerate the process of survival of the fittest.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.
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