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US said China agreed to cut tariffs on US car imports; petchem players on watch outUS said China agreed to cut tariffs on US car imports; petchem players on watch out |
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The US President Donald Trump on 3 December 2018 said that China has agreed to reduce and remove the 40 percent import duties on USA car, though many details were lacked. The announcement comes right after the two countries met in Argentina on 1 December and established a 90 days cease-fire in the ongoing trade war.
In July this year, China imposed 40 percent tariffs on US vehicle imports, which is about 25-percentage point higher than other trading partners.
This is regarded as a positive development in the progress of resolving the trade issues between the world’s two largest economies. The petrochemical industry is now on a watch out, hoping to see a similar move.
From 2017 to 2018, approximately 4.79 million tons of new PE capacity come online in the USA with most of the quantity was intended for China market. However, with the 25 percent tariffs Chinese government put on USA HDPE, LLDPE and PP cargoes, it becomes difficult for suppliers of this origin to compete with the other sellers.
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