| | |


News

Industry worried about 'unintended consequences' of trade wa

time:2018-06-26 09:51:22 From: Clark

 Washington -- Call it collateral damage from a trade war with China: Saudi Basic Industries Inc. says steep tariffs proposed on U.S. polycarbonate exports to China could cause the company to shift some production out of the United States.

 
That's what a Sabic executive told a May 15 hearing in Washington, that the potential trade war between the two countries "would lead to unintended consequences and result in disproportionate harm" to plastics and chemicals makers.
 
Sabic was not alone in saying tariffs could perversely push some production offshore.
 
The American Chemistry Council told the panel that China's retaliatory tariffs could cause some U.S. specialty polymer producers to "reduce or end production in the United States" to stay competitive in China's large market.
 
But Sabic made the strongest statements, specifically linking the potential for 25 percent tariffs on U.S. resin exports to China to harm to its U.S. factories and jobs.
 
"If China implements these retaliatory tariffs, we would seek to maintain our market share in China," said Greg Skelton, Sabic's director and head of government relations, Americas. "This may mean moving production out of the U.S. to our existing polycarbonate facilities in other regions."
 
Skelton specifically mentioned the company's PC manufacturing plants in Mount Vernon, Ind., and Burkville, Ala., and said that the "good manufacturing jobs that we provide ... would suffer adverse effects from a prolonged disruption in demand due to higher Chinese tariffs."
 
He also said reducing domestic PC production would hurt U.S. plastics processors and their customers that rely on Sabic materials.
 
"This would have associated cost impacts on downstream industries in the U.S., such as automotive, electronics and medical devices, that currently source their polycarbonate from our U.S. production," Skelton said. "While that's not the intention of the administration's proposed action, to bring negative repercussions to companies manufacturing in the U.S., it's important to factor in the real-world impact."
Tel : 0574-88233242    Fax : 0574-88396095    Email : sales@china-haijiang.com
Address :Tongyi Industrial Zone Dongwu Town Yinzhou District Ningbo City(Near BaoZhan Highway)
Copyright @ NING BO HAI JIANG MACHINERY MANUFACTURING CO.,LTD., ( 浙ICP备19026541号-1)Technical support: 谷歌推广&bossgoo BOSSGOO MALL Link