Tariffs are taxes on imported goods that increase costs for U.S. manufacturers and disrupt the flow of essential materials. For the chemical industry—which relies on globally sourced inputs to produce advanced products used across American manufacturing—tariffs function as a direct competitiveness penalty. When key inputs become more expensive or harder to access, U.S. facilities face higher production costs, reduced investment potential, and diminished global competitiveness.
Retaliatory tariffs imposed by trading partners compound the harm. By raising the price of U.S.-made chemical products abroad, foreign tariffs suppress demand for American exports and weaken one of the nation’s strongest and most innovation‑driven industrial sectors.
Overall, tariffs inject uncertainty into globally integrated supply chains and discourage the kind of long‑term investment and expansion that would otherwise strengthen U.S. manufacturing, create high‑skilled jobs, and expand America’s export advantage.
To advance a smarter, more strategic approach to tariff policy—and to ensure U.S. companies are not disadvantaged against non‑market competitors—the chemical industry is urging the Administration to:
- Launch a U.S. International Trade Commission (USITC) or Government Accountability Office (GAO) study on the economic effects of additional tariffs under Sections 301, 232, and 201, with a focus on impacts to U.S. manufacturing and downstream supply chains.
- Pursue common‑sense reforms to Sections 301 and 232 to ensure these tools are applied transparently, strategically, and in ways that do not inadvertently harm critical industries that rely on imported inputs to remain competitive.
- Seek concessions or alternative solutions with key trading partners that would allow for full repeal of Section 301 and Section 232 tariffs while still addressing underlying trade concerns.
- Exclude products from Section 301 tariffs when those same products qualify for Most‑Favored‑Nation (MFN) duty suspensions or reductions under the Miscellaneous Tariff Bill (MTB).
- Suspend MFN and Section 301 tariffs on essential goods and inputs identified by the USITC as critical to public health and emergency preparedness.
- Fully reauthorize the MTB with retroactivity and renew the Generalized System of Preferences (GSP) to lower costs and strengthen U.S. supply chain competitiveness.
- Eliminate tariffs on chemicals essential to climate, sustainability, and development goals—including those used for clean water, energy efficiency, food safety, and food security.
- Avoid imposing additional tariffs on chemical imports and avoid provoking retaliation on U.S. chemical exports, which would further undermine American competitiveness and job creation.
A modernized, targeted tariff strategy—grounded in economic impact, fairness, and global competitiveness—will strengthen U.S. chemistry, support advanced manufacturing, and reinforce America's position as a global leader in innovation and industrial strength.
