The US is at risk of having a $1.6 billion trade surplus in resin and plastics products wiped out as a result of the European Commission’s (EC’s) proposed countermeasures to Donald Trump’s trade tariffs, analysis from The Plastics Industry Association (PLASTICS) has found.
While the EC has not included plastics processing equipment and moulds in its proposed countermeasures, US plastics equipment and mould makers that use steel and aluminium imported from the EU have already been affected by the US tariffs, according to a report by PLASTICS chief economist Dr Perc Pineda.
It comes after the European Commission (EC) launched an information-gathering notice under Regulation (EU) No. 354/2014 regarding the new US tariffs and potential EU rebalancing measures tabled earlier this month.
Altogether, 1,708 products have been identified by the EC for possible countermeasures, including 60 resin and plastics products at the eight-digit EU Harmonised Tariff Schedule (HTS) level.
“When matched to the corresponding six-digit US HTS codes, the proposed EU tariffs are estimated to impact $5.9bn in US plastics resin and product exports to the EU, based on 2024 export values,” explained Pineda.
Based on the $4.3 billion in US imports of the above resin and plastics products from the EU in 2024, the EC’s proposed countermeasures put a potential $1.6 billion US trade surplus from 2024 at risk in 2025, Pineda said.
The EC has invited stakeholders affected by the US tariffs and the potential EU response to submit their views by 26 March.
Raw material supplier ACI Group highlighted the importance of building resilient supply chains and investing in niche alternative ingredients and materials to combat global economic uncertainty.
“Whether these tariffs are rolled back or expanded, that uncertainty will never really go away, and this is what will continue to do damage,” said Karsten Smet, ACI chief executive.
“Businesses must adapt – and quickly. I’m sure many will have a few choice words for the President at the moment, but the most important one is ‘contingency’. At ACI, we know just having a Plan B isn’t enough – Plans C through to Z will be needed to keep value chains running smoothly.
“What we thought of as ‘staple’ ingredients may not be ‘staple’ for much longer. It’s never been more important to partner up with distributors who can connect manufacturers with niche ingredients and alternative suppliers. Distributors can help offset a lot of this uncertainty by making use of the robust contingencies and cutting-edge digital solutions that are already in place.”
Laszlo Horvath, an associate professor in the College of Natural Resources and Environment at Virginia Tech and director of the Centre for Packaging and Unit Load Design in the Department of Sustainable Biomaterials warned that tariffs can “significantly impact costs”.
“Many packaging moulds, which can cost millions, are made overseas,” he said.
“If a company orders a mould from Europe or China, and tariffs increase before it arrives, they suddenly owe more money. This increased cost is then passed down to consumers.”
