On May 12, 2025, the Joint Statement on U.S.-China Economic and Trade Meeting in Geneva was released, marking a major step toward easing their ongoing trade war. U.S.-China tariff policies have undoubtedly become one of the hottest topics in the polyurethane industry recently.
From 12:01 PM Beijing time on May 14, 2025 (00:01 AM EDT on May 14), U.S.-China tariff cuts officially came into effect. The adjustments by the U.S. on tariff rates for goods imported from China are as follows:
(i) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 percent on those articles pursuant to the terms of said Order;
(ii) and removing the modified additional ad valorem rates of duty on those articles imposed by Executive Order 14259 of April 8, 2025 and Executive Order 14266 of April 9, 2025.
The table below shows a comparison of U.S. tariffs imposed on China for major polyurethane materials before and after the joint statement. Relatively speaking, the polymeric MDI sector benefits more from the temporary tariff truce.
|
Product |
Before May 14, 2025 |
From May 14, 2025 |
|
Polymeric MDI |
85.5% = 6.5% + 25% (Section 301) + 54% (20% fentanyl-linked tariff + 34% reciprocal tariff) |
61.5% = 6.5% + 25% (Section 301) + 30% (20% fentanyl tariff + 10% reciprocal tariff) |
|
Polyether Polyol |
51.5% = 6.5% + 25% (Section 301) + 20% (fentanyl tariff) |
51.5% = 6.5% + 25% (Section 301) + 20% (fentanyl tariff) |
|
TDI |
85.5% = 6.5% + 25% (Section 301) + 54% (20% fentanyl tariff + 34% reciprocal tariff) |
61.5% = 6.5% + 25% (Section 301) + 30% (20% fentanyl tariff + 10% reciprocal tariff) |
|
Monomeric MDI |
60.5% = 6.5% + 54% (20% fentanyl tariff + 34% reciprocal tariff) |
36.5% = 6.5% + 30% (20% fentanyl tariff + 10% reciprocal tariff) |
Notes:
1) The “Before May 14” figures in the table above do not include “the US retaliated by imposing additional tariffs in April 2025”;
2) In the "34% reciprocal tariff" before May 14 2025, the 24% tariff was suspended for the initial 90 days.
3) The main polyurethanes exported from China to the U.S. are polymeric MDI and polyether polyol, while exports of TDI and monomeric MDI are minimal. This table is provided for comparison of tariffs on similar products.
