Page 49 - Plastics News Issue May 2025
P. 49
INTERNATIONAL NEWS
Now Comes the Hard Part… Policy Shifts
with a New Administration
a major tariff on imported bourbon to get the
attention of Mitch McConnell? It also is very pos-
sible that President Trump has proposed these
tariffs as a negotiating technique.
Several of his allies suggest these tariffs will be
reduced or eliminated if the target nation pro-
vides something in return. This could be better
access for US-made goods or promises to shift
production to the US. There is evidence that
Taiwan Semiconductor decided to build its new-
est plant outside Phoenix for that very reason.
Three Major Policy Shifts
Some of this exchange already has been seen
Three things stand out as far as projected pol- as Colombia backed off its refusal to accept mi-
icy. President Trump and the GOP are commit- grants back into the country, and Europe has
ted to what has been described as nationalist been shifting away from Russian oil and gas to-
populism. This approach means the US will be- ward US output. In President Trump’s first term,
come more isolationist when it comes to world hundreds of exemptions were given to tariffs if
affairs and more protectionist when it comes to the nations targeted agreed to US demands.
the economy. This is the intent, in any case, but Global Affairs
making it a reality will be challenging.
The second major policy shift involves US en-
Trade and Tariffs
gagement in global affairs. It likely is that the US
The first major shift will involve trade, where will restrict support for Ukraine and may back
President Trump asserted that he would impose away from commitments in the Middle East.
a 20% tariff on anything that was exported into There is talk about withdrawing from NATO, and
the US and a 60% tariff on goods from China. the US will not engage in most of the internation-
That is easier said than done. In his first term, al meetings. This strategy may erode, as well,
he tried to impose significant tariffs on import- because it means the US will not have a seat at
ed steel and aluminum, but by the time the plan the table when decisions are being made.
was implemented, there were exemptions for The most pressing issue will be Taiwan and
Canada, Mexico, Europe, South Korea, Australia, whether the US will back that nation if China at-
Brazil, Argentina and Japan. China dodged the tacks. North Korea is a potential crisis point, as
tariffs by transshipping. Countries hit by tariffs well. Given how integrated Taiwan, South Korea
retaliated with tariffs and restrictions of their and Japan are in the US economy, this will be an
own. Remember when Japan struck back with
May 2025 PLASTICS NEWS 49
