WASHINGTON (May 31, 2018) – The following statement may be attributed to American Chemistry Council (ACC) President and CEO, Cal Dooley, in response to news that the U.S. will proceed with levying steel and aluminum tariffs on the European Union, Canada and Mexico:
“Today’s announcement to levy steel and aluminum tariffs against three of our closest allies and trading partners will disadvantage U.S. chemical manufacturing and put our country’s manufacturing renaissance at risk. The unilateral move will also invite retaliation and threaten the viability of trade agreements like the North American Free Trade Agreement, which have been instrumental to the growth and job creation of the U.S. chemical sector.
“Manufacturers in the U.S. have maintained their competitive position in the global marketplace by extending their supply chains regionally, and tariffs threaten to disrupt a system that has helped keep prices and costs low for decades. When these tariffs go into effect on Friday, trains arriving to the U.S. from Mexico and Canada will be carrying metals that are 25 percent more expensive than when they left the station just a few days ago. The impacts will be felt immediately in the form of higher prices for chemical manufacturers who rely on these imports to expand or build new production facilities, many of which are under construction at this very moment. The increased costs could force the delay, abandonment, or even cancellation of billions of dollars of chemical production facility investments that have been announced over the last ten years. Downstream industries like the automotive sector, which relies on both chemicals and metals, will feel the crushing impact of the tariffs as well.
“Tariffs have the potential to threaten U.S. economic security. Retaliation by our trading partners will curtail U.S. exports and erode the $194 billion in chemical industry investments that are predicated on the U.S. being able to export to the countries targeted by these actions. The EU has already threatened to retaliate by imposing a 25 percent tariff against approximately $500 million in exports of U.S.-made chemicals. We anticipate other trading partners to target chemicals as well.
“We urge President Trump to uphold the country exemptions originally in place for imports of steel and aluminum and focus instead on bringing ongoing trade negotiations to a productive conclusion.”