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Ryan Baldwin
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WASHINGTON (September 24, 2018) – The following statement may be attributed to American Chemistry Council (ACC) Director of International Trade, Ed Brzytwa, in response to the implementation today of U.S. List 3 tariffs and subsequent retaliation by China against U.S. exports:

“With the U.S. and China imposing another round of tariffs on an increasing number of products, the cost of doing business in the United States is rising. U.S. manufacturers today face a steep climb to retain our position as one of the world’s leading, low-cost producers of chemicals. A total of 1,517 chemicals and plastics imports from China, valued at $15.4 billion, have now been targeted across all three U.S. lists. The tariffs will cut off U.S. manufacturers from international supply chains and from importing inputs that help keep them competitive in the global marketplace. At the same time, retaliatory tariffs by China have hit more than 1,000 U.S. chemicals and plastics exports, worth an estimated $10.8 billion, erecting a huge barrier to China’s growing markets.

“The tariffs – in effect a tax – put U.S. chemical manufacturers at a disadvantage, but we aren’t the only ones that will suffer the impact. Since chemistry touches 96 percent of all manufactured goods, taxes on our industry will ultimately raise the prices of popular consumer products – everything from cars and trucks to electronics.

“As with previous tariff rounds, U.S. chemicals manufacturers welcome the opportunity to make a case for why more chemicals should be excluded from this round of tariffs. Earlier this month, our industry reached a milestone – surpassing $200 billion in announced new chemical investment projects here in the United States. Around half of that investment is still in the planning or development stages and therefore vulnerable to delay or abandonment as a result of the new tariffs imposed on our industry. Nearly all of that investment is focused on serving the global market. American businesses, which may have to consider shifting their production overseas to avoid the tariffs, or face the possibility of having to close up shop entirely, deserve the opportunity to be heard.

“Our industry has been clear that a tit-for-tat trade war will hurt U.S. manufacturers, retailers, and consumers. We call on the U.S. and China to resume negotiations toward an agreement that will eliminate the need for these costly tariffs.”

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