Trade War: Will PVC Resin Take a Hit?

Trade War: Will PVC Resin Take a Hit?

Price-competitive globally, US producers of PVC (polyvinyl chloride) found extensive opportunities abroad over the past decade, particularly as China and other developing countries built out their infrastructure. In 2017, China accounted for 11% of US PVC exports. As the Trump administration outlines its tariff plans, China has readied its own. Both countries have added a list of second-tier tariffs – primarily focused on chemicals – to be imposed on a case-by-case basis. Will PVC resin make the cut?

The Chemical Connection

Chemicals are involved in a wide range of US manufacturing sectors, from plastics to food. Any fluctuation in chemical supply chains has the potential to cause severe ripple effects throughout the entire economy – not only within the chemical industry.

Currently, China is one of the US chemical industry’s major trade partners, but the country has a developing chemical industry of its own that would relish the opportunity to grow even faster.

Waiting Game

After the first set of 25% tariffs against Chinese imports went into effect on July 6th, the Trump administration announced a second list of possible tariffs that is currently under review. The second list largely comprises chemicals, and the chemical industry is at risk in the event that tariffs are put in place on such goods. Hearings with industry insiders and other concerned parties will run through August 30th. In the meantime, China has readied a list of chemicals of their own upon which to impose tariffs in retaliation – including PVC resin.

As the trade war between the US and China heats up, industry insiders can only wait and see.

Want to Learn More?

Don’t worry, we have you covered! For additional information and analysis of US industry trends, see Polyvinyl Chloride: United States, a report published by the Freedonia Focus Reports division of The Freedonia Group. This report forecasts to 2022 US PVC resin demand and shipments in pounds. Total demand is segmented by product in terms of:

  • building and construction
  • consumer and institutional
  • packaging
  • electrical and electronic
  • transportation
  • other markets such as furniture and furnishings; industrial goods and machinery; and adhesives, ink, and coatings

To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2007 to 2017.

While you’re there, check out some of our related reports, which include:

About the Author

Chris Dyer is a Market Research Analyst for Freedonia Focus Reports. He holds a Master of Arts in Security Studies, and his experience as an analyst covers multiple industries.