US-China trade war: China imposes 74.9% tariffs on US plastic imports
China’s Ministry of Commerce announced Sunday that it would impose a 74.9% tariff on imports of polyformaldehyde copolymer from the United States, alleging dumping practices that have caused significant damage to the domestic industry.
The Chinese Ministry of Commerce explained in a statement that investigations into dumping practices revealed that products of this industrial plastic, imported from the United States, the European Union, Japan, and Taiwan, are being sold in the Chinese market at prices below their actual value.
The Chinese Ministry of Commerce pointed out that these practices have caused huge losses for the Chinese industrial sector, adding that the decision includes imposing tariffs of 74.9% on American companies, 34.5% on European companies, 24.5 to 34.5% on Japanese companies, and 3.8 to 32.6% on Taiwanese companies.
The decision follows an investigation launched by the ministry on May 19, 2024, into imports of polyformaldehyde copolymer, a compound used as a substitute for metals such as copper and zinc due to its light weight and durability.
It’s used in a variety of industries, including automotive parts, electronics, consumer products, building materials, and the pharmaceutical sector.
The Chinese Ministry of Commerce published preliminary results of the investigation on January 16, concluding that dumping practices were being carried out by American, European, Japanese, and Taiwanese companies.
The decision coincided with the conclusion of a round of trade negotiations between Washington and Beijing, during which an agreement was reached to suspend mutual tariffs for 90 days, drawing attention to the timing of China’s new decision.
On April 2, former US President Donald Trump announced the imposition of additional tariffs on a number of US trading partners, most notably China, which responded with similar tariffs.
This led to a tit-for-tat escalation, with US tariffs on China rising to 145% and Chinese tariffs on the US rising to 125%.
Against the backdrop of this escalation, representatives from the two countries met in Geneva on May 10 and 11.
The talks resulted in an agreement to temporarily reduce mutual tariffs for 90 days, starting May 14.
US tariffs on Chinese goods will be reduced to 30%, and Chinese tariffs on US goods will be reduced to 10%.
