Page 40 - Plastics News June 2018

internAtionAL news

Plastics groups call Trump steel tariffs 'dangerous, disruptive'

lastics industry business groups pushed back hard protect the steel and aluminum manufacturing capacities
Pagainst the Trump administration's May 31 decision to in the United States. Media reports quoted U.S. Commerce
move forward with tariffs on steel and aluminum from Secretary Wilbur Ross as saying that increasing imports are
Canada, Mexico and Europe, calling it "dangerous" trade a threat to the steel and aluminum sectors. Government
policy that will raise prices and cost industry jobs. "The and private analysts say the root problem is a large global
Trump administration's decision overcapacity of steel production, particularly in China.
today to impose tariffs on
imports of steel and aluminum
from Mexico, Canada and the G7 plastics charter details some
[European Union] — America's specific goals
strongest trading partners —
will benefit America's trade cean litter, recycling and more environmentally
rivals and cost American jobs, Osustainable uses of plastics in general get significant
plain and simple," said Bill attention in the Ocean Plastics Charter adopted June
Carteaux, CEO of the Washington-based Plastics Industry 9 by five of the G7 member nations.The non-binding
Association. "We urge President [Donald] Trump and his charter, signed by Canada, France, Germany, Italy, the
administration to reconsider this dangerous, disruptive United Kingdom and the European Union, suggests those
approach to trade policy," he said, adding that the tariffs governments want to see significant improvements in
would particularly hit mold makers since much of the how plastic is used and how plastic waste is managed.
steel they use comes from the EU and can't be sourced in It includes a commitment to recycle and reuse at least
the United States. 55 percent of plastics packaging by 2030, and recover all
"These tariffs could quite simply put these companies at plastics by 2040, and as expected, calls for “significantly
risk of going out of business, all while increasing costs reducing” unnecessary uses of single-use plastics.
that will be felt throughout the domestic supply chain," The document includes 23 specific points in five broad
Carteaux said. "American manufacturers need stable, categories, and also suggests stronger government
consistent trade policies and should not have to suffer roles in supporting
constraints due to a trade war." Similarly, the head of markets for recycled
the American Chemistry Council said the tariffs "have plastics, including
the potential to threaten U.S. economic security" and increasing recycled
hurt planned chemical and plastics industry investments content by at least
of nearly $200 billion, much of it enabled by shale gas 50 percent in plastic
feedstocks that are transforming the U.S. into a low- products by 2030.
cost producer. "Today's announcement to levy steel
and aluminum tariffs against three of our closest allies “Plastics are one of the most revolutionary inventions
and trading partners will disadvantage U.S. chemical of the past century and play an important role in our
manufacturing and put our country's manufacturing economy and daily lives,” the charter said. “However,
renaissance at risk," said ACC CEO Cal Dooley. "The the current approach to producing, using, managing
unilateral move will also invite retaliation and threaten and disposing of plastics poses a significant threat to
the viability of trade agreements like the North American the environment, to livelihoods and potentially to
Free Trade Agreement." Carteaux also expressed concern human health.”
the tariffs against Canada and Mexico could "poison the The agreement was not signed by two G7 members,
well" in the ongoing NAFTA negotiations.ACC noted that Japan and the United States. It’s not clear why. Many of
the EU has already threatened to retaliate against $500 the specific commitments spelled out in the document
million in U.S. chemical exports. are more than a decade away, but if implemented could
mark a sharp change in plastics use and the role of
Trump Administration and its allies in manufacturing argue
that the tariffs are needed on national security grounds, to government in the industry.

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