La duty war resurfaces and the latest news from China reminds us that it is not yet resolved and that countermeasures will continue in response to initiatives deemed discriminatory. The sector affected this time is that of plastic bags. Those affected are the China imports da European Union, United States, Japan and Taiwan which from today are burdened by a tariff surcharge of up to almost 75%.
The new duties, imposed by the Chinese Ministry of Commerce, will particularly affect imports of polyformaldehyde copolymer (Pom) which can partially replace metals such as copper and zinc and find various applications, including components for cars, electronics and medical equipment, the ministry said.
The conclusions of the Ministry of Commerce come at the end of aanti-dumping investigation launched in May 2024, shortly after the United States dramatically increased tariffs on electric vehicles, computer chips and other Chinese imports. The ministry said in January that initial investigations had found evidence of dumping and implemented preliminary anti-dumping measures in the form of a filing effective January 24.
The US has the highest tariff. For the EU it is 34,5%
The ministry indicated a tariff schedule. The United States has been applied the highest tariff with a +74,9%. For the European Union the tariff stops at 34,5%, for Japan at 35,5%, with an exception for Asahi Kasei, which will see a reduced duty to 24,5%. For Taiwan the average duty is 32,6%, but Formosa Plastics and Taiwan Polyplastics will enjoy more favorable tariffs, 4% and 3,8% respectively.
The move comes amid a easing of trade tensions between the US and China. Last week, the two countries agreed to a 90-day tariff reduction: the US reduced tariffs on Chinese goods from 145% to 30% and China lowered tariffs on US imports from 125% to 10%, raising hopes of easing global trade tensions.
In response, JP Morgan raised its rating on emerging market stocks from “neutral” to “overweight” this morning. “The de-escalation on the US-China trade front reduces a major headwind for emerging market stocks,” JPM analysts said in a note, adding that the stocks would be further supported by a weaker dollar in the second half of this year.
