Page 45 - Plastics News July 2018

internAtionAL news

U.S. Imposes Tariff on Chinese Imports; Beijing Fires Back

he trade war that erupted between the U.S. and China operations in China,” AmCham chairman William Zarit
Tcarries a major risk of escalation that could weaken said. American trade groups are urging the two countries
investment, depress spending, unsettle financial markets to resume talks.“Tariffs will bring retaliation and possibly
and slow the global economy. The opening shots were more tariffs,” said Jay Timmons, president of the National
Association of Manufacturers.

Disposable plastic bags, utensils

will be banned in Ensenada

isposable plastic bags and utensils will be banned
Dat commercial establishments in the municipality
of Ensenada, Baja California, starting next year.The
new environmental policy will be implemented in
tandem with an awareness campaign to inform the
fired just after midnight, when the Trump administration public about its benefits.Lawmakers in Veracruz have
imposed a 25 percent tariff on $34 billion of imports unanimously approved legislation banning the use
from China, and Beijing promptly retaliated with duties of plastic bags and straws by businesses.The state’s
on an equal amount of American products. It accused 212 municipalities will have 180 days to modify their
the U.S. of igniting “the biggest trade war in economic own laws accordingly, while state authorities will
history.” In retaliation, China is targeting US farm and oversee a gradual prohibition on the use of plastic by
energy exports, including soyabeans, a top export of US commercial establishments and their replacement with
states that supported Mr Trump, and crude oil. The Trump biodegradable alternatives.
administration sought to limit the impact of the tariffs on "awareness will be raised and [consumers] will be given
U.S. households by targeting Chinese industrial goods, not alternatives through education and environmental
consumer products, for the first round of tariffs. But that
step raises costs for U.S. companies that rely on Chinese-
made machinery or components. And it could force them
to pass those higher costs on to their business customers
and, eventually, to consumers.
We are not yet seeing the full impact. But it will come,”
said Kip Eideberg, a spokesman for the Association of
Equipment Manufacturers. That view was backed up by
the Federal Reserve which in the minutes of its June
meeting expressed concern about the economic impact
of Mr Trump’s trade policies and reported that businesses programs,” said the president of the Chalchi
were telling it that tariffs were already causing them Foundation. Olga Díaz Ordaz Terrones explained that
to put investments on hold or reduce them. Executives a single plastic straw which can take more than 100
within China are also braced for retaliatory action against years to break down can kill a pelican or a turtle,
US companies including inspections, audits and shipment while a plastic bag can kill a dolphin or other similar
delays. An alarmed American Chamber of Commerce sized species. She doesn’t think the new law will have
in Beijing said its members were opposed to the trade any economic repercussions in Mexico because most
war. “While our 900 member companies continue to straws are imported from China, while Mexican firms
suffer from not having a level playing field in China, they that manufacture single-use plastic bags and straws
are still extremely clear: increased tensions in the US- will have the necessary time to create biodegradable
China economic relationship will negatively impact their products.

45 July 2018 Plastics News