SOCMA Calls on USTR to Delist Chemicals from China’s Proposed Tranche 4
Specialty chemical supply chains are particularly dependent on China because many inputs are unavailable elsewhere, which makes the specialty chemicals industry uniquely vulnerable to the 301 tariffs.
In recent testimony before the U.S. Trade Representative (USTR) Section 301 Committee, the Society of Chemical Manufacturers & Affiliates (SOCMA) called for the delisting of Chinese-origin chemicals from the proposed Tranche 4, which would add an additional $13.2 billion in chemicals and plastics imports. SOCMA cited the profound impact 25% tariffs would place on specialty and fine chemical manufacturers. SOCMA’s testimony focused on specialty chemistry bringing uniquely manufactured substances to market, often through batch production, which means they face proportionately higher business costs than other sectors.
“Batch chemical producers are not single-product companies,” said Matthew Moedritzer, SOCMA manager for Legal & Government Relations. “Many producers have hundreds of products in their portfolios, each requiring a unique set of inputs. All such inputs are vitally important to the final product. Changing any one component, therefore, can have significant effects.”