Chemicals and plastics are foundational to American manufacturing and exports but are exposed to unfair trade and regulatory practices from other countries. Recent changes in global chemical production and trade provide a unique opportunity to adopt new targeted trade measures that will advantage U.S. chemical as well as other manufacturing and agricultural production, investment, and jobs for years to come. Such measures would align with other Administration objectives in supporting innovative and advanced manufacturing, energy dominance, high-paying jobs, science-based regulations, and lower costs for U.S. producers and consumers.
American Trade Relies on American Chemistry
Why Chemicals?
Our industry’s potential to contribute to this vision will depend on a robust partnership between the chemical industry and the U.S. Administration on:
- The U.S. Chemical Industry is a Model of an “America First” Approach. The U.S. chemical industry is a net exporter and has been one of the largest exporting industries for decades. Prioritizing chemical production demonstrates a positive impact of aligning trade with domestic policy objectives.
- Shifts in Global Chemical Production Make It the Right Time to Focus on Chemicals. Overcapacity and overregulation are shifting global chemical production and trade, bringing new opportunities and challenges for U.S chemical producers. Trade policies addressing these unfair trading practices will advantage U.S. domestic production for years to come.
- A Chemical Sectoral Would Create Common Cause with Trusted Trading Partners. Producers in trusted trading partners are facing similar challenges to U.S. chemical producers.
- Chemicals Benefit All U.S. Manufacturing and Agriculture. Chemical production has multiplier effects throughout the economy. Chemicals represent a large share of both manufacturing and agricultural inputs. With the right trade and domestic policies, chemicals will be much easier to reshore than other advanced manufacturing.
ACC's Top 5 Trade Priorities:
Latest News
ACC Response to Section 301 Review
On June 28th, 2024, the American Chemistry Council (ACC) filed comments to the Office of the United States Trade Representative (USTR) on recommendations contained in its long-awaited Four-Year Review of the Section 301 tariffs on imports from China. ACC has long requested this review so was happy to see the report finally released. ACC supports the intent of this and the previous Administration to address China’s acts, policies, and practices regarding intellectual property, technology transfer, and innovation. Our comments include several suggestions to better implement these recommendations and reform the Section 301 process to target these acts, policies, and practices.
Our suggestions include:
- Publish a current and updated list of goods subject to Section 301 tariffs.
- Reform the Section 301 process to better target chemicals where there are concerns about China’s unfair trade practices.
- Reform the proposed Section 301-exclusion process to include other inputs needed to produce U.S. chemicals and plastics, especially inputs that are not produced domestically or in sufficient quantities.
- Extend the Section 301-exclusion process on a periodic basis instead of a single exclusion process and provide greater clarification for any denials or non-continuations of exclusions.
- Negotiate new agreements with trusted trade partners and implement additional trade and tax incentives to stimulate U.S. investments and production of chemicals.
- Align the Section 301 recommendations with other Administration policy priorities and incentive opportunities.
It is our hope that the USTR will take a careful look at our recommendations and provide a public hearing so that stakeholders can discuss these recommendations with USTR and the Administration.
Read the response
