Tariff Surge Hits 245 Percent US China Trade War Escalates Fast

A dramatic escalation in the US-China tariff standoff is reshaping global supply chains. On April 15, the United States raised tariffs on Chinese imports to a stunning 245%, marking the forth increase in just one week. China responded swiftly with its own set of retaliatory hikes, pushing its tariffs on US goods to same tarrifs.

One of the industries feeling the heat is the PVC sector. Although China imported only 829.622 tons of PVC paste resin from the US in 2024 and exported 107.780 tons back, the small trade volume means the new tariffs will have minimal direct impact on resin flows. China’s domestic capacity can cover demand, and alternative sources are readily available.

In contrast, the effect on PVC gloves is more serious. The US, the world’s largest consumer of disposable gloves, heavily relies on imports. China, the dominant producer, exported 46% of its PVC gloves to the US in 2024, with total shipments reaching 97.15 million boxes, a rebound from the post-pandemic decline.

However, since the 20% tariff spike in March, average glove export prices have dropped below $8 per box, triggering losses across Chinese factories. Production lines have fallen from 460 to 420, with more closures looming. Manufacturers are preparing to halt operations from April to June amid shrinking margins.

Raw material prices have dipped, offering some support to PVC paste resin producers, but the downstream slump is undeniable. Weak overseas demand, canceled orders, and rising tariffs have sharply cut glove manufacturers’ appetite for raw inputs. As production lines idle, pressure mounts on both resin and plasticizer markets. For now, factories are shifting output toward general-purpose materials to ease inventory stress.

Unless trade tensions cool, the PVC glove supply chain may face a prolonged downturn, dragging resin markets along with it.