Plastic resin production declined in March even as overall US chemical output edged upward, according to the American Chemistry Council’s (ACC) latest Weekly Chemistry and Economic Trends report. Tariffs also have had an impact on chemical output, according to the report. “Prior to the tariff announcements, there had been further progress on inflation,” the ACC said in its report. “Growth in consumer prices is now expected to accelerate in 2025 to a 3.1% pace before easing to a 2.7% pace in 2026.” Tariffs introduced in early April, combined with retaliatory moves from China and Canada, are casting a long shadow over the second quarter, according to the report. Although a recession isn’t currently forecasted, the risk has escalated significantly. ACC said it is "monitoring the tariffs situation and continuing to analyze it as the circumstances develop." The ACC report, released April 18, indicated that oil prices moved higher compared to the previous week as new sanctions were put in place targeting Chinese imports of Iranian oil, while Iraq agreed to cut its oil imports. The ACC’s latest Survey of Economic Forecasters shows that nearly all economic indicators have weakened since March. Industrial production, which fell 0.3% in 2024, is projected to grow by just 0.9% in 2025 and 1.0% in 2026 — sobering figures for plastics producers tied closely to US manufacturing output. Housing starts fall The ACC reported broader economic unrest that includes a sharp drop in housing starts, weakening manufacturing sentiment, and growing uncertainty that is tied to newly imposed tariffs on US imports. Industrial production in the US slipped 0.3% in March after three consecutive monthly gains, with the decline largely driven by a sharp drop in utility output amid unseasonably warm weather. While the broader industrial sector faltered, manufacturing and mining managed modest gains ahead of the widely anticipated tariff announcements on April 2. Overall for plastics processors and chemical manufacturers, the picture was mixed. Within manufacturing, aerospace, motor vehicles, electronics, and apparel posted strong output increases. However, these were undercut by notable declines in wood products, petroleum refining, and textiles. Industrial production trends On a year-over-year basis, overall industrial production rose 1.3%, though capacity utilization edged down 0.4 points to 77.8% — exactly where it stood one year ago. Total industrial capacity has grown by 1.3% over that same period. Chemical output continued to climb, with the Federal Reserve’s index for the sector rising 0.2% in March to reach its highest level since July 2018. Gains in agricultural chemicals, coatings, synthetic rubber, manufactured fibers, and other specialties outweighed declines in plastic resins, inorganic chemicals, and consumer products. Organic chemicals held steady. Year-over-year, chemical production was up 5.8%, and capacity utilization for the sector rose to 83.1%. However, it's important to note that capacity figures now reflect revised methodology from the Fed, making comparisons with earlier data inconsistent. Despite the sector's resilience, regional indicators point to softening ahead. Manufacturing conditions in New York and Philadelphia contracted further in April, with the Empire State’s headline index remaining in negative territory and the Philadelphia Fed’s measure plunging to a two-year low of -26.4. Both regions reported falling new orders and growing concern about future conditions. Housing data spark worry Housing data also added to concerns. March housing starts dropped 11.4%, driven by a 14.2% decline in single-family construction — a sector with significant implications for demand in plastics-intensive applications like piping, insulation, and exterior cladding. Regional weakness was concentrated in the South and West, although the Northeast and Midwest posted gains. Building permits, a leading indicator of future construction activity, rose 1.6%, suggesting some forward momentum, but the gain was fueled by multifamily projects. Single-family permits continued to decline. Consumer activity provided a rare bright spot in March, with retail and food service sales jumping 1.4%, according to the report. Analysts attribute this surge to consumers pulling forward purchases in anticipation of higher prices due to tariffs. Auto dealers saw sales rise more than 5%, while restaurants, sporting goods stores, and home improvement retailers also posted solid gains. Compared to a year ago, the ACC noted that retail sales were up 4.6%, despite ongoing weakness in furniture and home furnishings. Business inventories remained on the rise, climbing 0.2% in February. Sales, however, rose even faster — up 1.2% — causing the inventories-to-sales ratio to dip slightly from 1.36 to 1.35. For plastics suppliers and converters managing raw material and finished goods inventories, this shift may offer some temporary breathing room. Trade pressures continued to evolve in March, with import prices slipping 0.1% ahead of the tariff hikes. Fuel prices led the decline, while nonfuel imports saw a slight uptick. Export prices remained flat for the month, but have gained 2.4% over the past year. In the chemical sector specifically, import prices have now fallen for three straight months, down 1.3% year-over-year, while export prices rose 3.0% in the same timeframe. Consumer spending to moderate Consumer spending is also expected to moderate, while business investment is likely to slow to 1.7% growth in both 2025 and 2026, according to the ACC. Housing starts, another plastics-relevant market, are forecast to remain flat through 2025 before inching up slightly in 2026. Vehicle sales — a major demand driver for plastics — are expected to slide to 15.5 million units in 2025 before edging up again the following year. Labor market dynamics are shifting as well. The unemployment rate is projected to rise to 4.3% in 2025 and 4.5% in 2026 as the economy softens and job growth slows, the report indicated. Inflation, which had shown signs of easing, is now expected to accelerate again due to cost pressures stemming from tariffs, with consumer prices forecast to rise 3.1% in 2025 before cooling to 2.7% in 2026. Commodities and energy markets continue to react to global developments. Oil prices increased on news of sanctions targeting Chinese imports of Iranian oil and Iraq’s pledge to cut exports. US natural gas prices, by contrast, declined due to warmer temperatures. The oil and gas rig count dropped by eight to 577. For the plastics and chemical sectors, volatility in energy prices — and feedstock costs — remains a key concern. Railcar data provided a modest silver lining: Chemical loadings rose 2.3% year-over-year on a 13-week moving average and have increased in eight of the last 13 weeks. This could indicate that, at least for now, demand for chemical intermediates and finished plastics continues to hold up. As the second quarter unfolds under the weight of trade uncertainty and shifting consumer dynamics, plastics producers and processors are navigating a market marked by resilience in some segments and emerging risk in others. Strategic planning, inventory management, and close tracking of regulatory developments will be critical in weathering what is shaping up to be a volatile year.

The Liberty Justice Center is suing the Trump administration’s authority to unilaterally issue across-the-board tariffs without congressional approval on behalf of five owner-operated businesses, including Genova Pipe, a Salt Lake City–based extruder of ABS pipe. The company uses imported resin from South Korea and Taiwan, and the tariffs have increased raw material costs at its Washington state factory, which primarily exports to Canada. Misuse of emergency act, plaintiffs claim Filed on April 14 in the US Court of International Trade, the lawsuit challenges the use of the International Emergency Economic Powers Act (IEEPA) to justify the “Liberation Day” tariffs announced by Trump on April 2, and then suddenly paused for 90 days a few days later, as well as tariffs on Mexico, Canada, and China. “Under that law, the president may invoke emergency economic powers only after declaring a national emergency in response to an ‘unusual and extraordinary threat’ to national security, foreign policy, or the US economy originating outside of the United States,” explains a press release on the Liberty Justice Center website. The lawsuit argues that the justification — a trade deficit in goods — is neither an emergency nor an unusual or extraordinary threat. “Trade deficits have existed for decades, and do not constitute a national emergency or threat to security. Moreover, the administration imposed tariffs even on countries with which the US does not have a trade deficit, further undermining the administration’s justification,” notes the release. The IEEPA does not authorize the president to impose across-the-board tariffs — it does not even authorize tariffs at all — and even if the IEEPA did extend such power to the president, that would be an unconstitutional delegation of Congress’s power to impose tariffs, according to the center. No domestic sourcing alternatives available to Genova Pipe The tariffs are devastating small businesses across the country, according to the Liberty Justice Center. Genova Pipe, which is a party to the lawsuit, operates seven manufacturing facilities across the United States. “With limited domestic sources, we rely on imports to meet our production needs,” said Andrew Reese, president of Genova Pipe, in a prepared statement. “The newly imposed tariffs are increasing our raw material costs and hindering our ability to compete in the export market.”  Genova Pipe cannot domestically source the raw materials, including plastic resins, and manufacturing equipment it needs to produce its American-made plastic pipe, conduits, and fittings, the company said in the filing. There are only two US producers of ABS resin suitable for the products that Genova makes, and one of them is shutting down and the other is unavailable to supply the company. “With over 75% of global ABS resin production concentrated in Northeast Asia, Genova Pipe is dependent on imports to continue its manufacturing operations,” said the filing. “The tariffs will directly increase the cost of raw materials, manufacturing equipment, and resale goods imported from abroad by Genova Pipe. And its Canadian customers may opt for local suppliers who are not subject to the tariffs, potentially resulting in a large loss of revenue. The other businesses taking part in the suit are VOS Selections, a New York–based importer and distributor of alcoholic beverages; FishUSA, an e-tailer specialized in fishing tackle and related gear; MicroKits, a maker of educational electronic kits and musical instruments in Charlottesville, VA; and Terry Precision Cycling, a Vermont-based brand of women’s cycling apparel.

ExxonMobil has teamed up with Malpack, a Canadian packaging producer specializing in film extrusion, to develop a high-tenacity, power pre-stretch film using ExxonMobil’s newly launched Signature Polymers portfolio. Integration challenge ExxonMobil and Malpack faced the challenge of integrating ExxonMobil’s performance polymers into Malpack’s existing formulations to enhance film performance. The companies said the collaboration led to the development of a new stretch film with high tenacity, strong holding force, and reliable load stability across all pre-stretch levels. A key component of the formulation is Exceed S 1716 metallocene polyethylene (PE), part of ExxonMobil’s Signature Polymers portfolio. Used as a discrete layer within a nine-layer film structure, the resin allowed Malpack to streamline production by eliminating the need for blending, according to the companies. It also delivered strong processing performance on wide, 4.5-meter extrusion lines. According to the companies, Exceed S 1716 maintained high tenacity while offering excellent processability. Compared to Exceed m 3518 metallocene PE processed under the same conditions, the new resin showed only minimal impact on head pressure, motor load, and melt temperature — contributing to efficient and stable film production. The resulting stretch film offers a combination of performance and efficiency designed for demanding packaging applications, according to the companies. Key benefits include: Consistent load stability across all pre-stretch levels, enhancing pallet containment and transport safety; efficient processing on wide-width lines, with stable throughput, reduced motor load, and tight gauge control; high toughness and downgauging potential, allowing for thinner films that maintain strength while using less material; improved clarity and puncture resistance, which aids barcode readability, product presentation, and protection for sharp or irregular loads. ExxonMobil’s Exceed Flow m 1716 polyethylene delivers a combination of high flow and high tenacity — two characteristics typically considered at odds, the companies said, adding that this balance enabled faster line speeds, lower extrusion pressure, and reduced motor load compared with traditional high-tenacity resins. The companies said the result was smoother cast film processing and consistent extrusion performance, opening the door to downgauging opportunities without compromising load stability or holding force — key metrics for stretch film quality. Pushing limits of pre-stretch film design Malpack, which brings more than four decades of experience in film manufacturing, leveraged the Signature Polymers platform to push the limits of pre-stretch film design. The company said the project illustrates how tailored material selection and close collaboration across the value chain can yield tangible gains in both performance and production economics. ExxonMobil said it introduced its Signature Polymers brand to unify its polyolefin offerings under a single identity, aiming to simplify portfolio navigation and foster closer partnerships across the supply chain.

IMAGE COURTESY OF POLYVEL New softening agents developed by masterbatch supplier Polyvel are designed for the efficient and cost-effective production of nonwoven polypropylene (PP) products with extra-soft surfaces. Small doses of the additives achieve effects ranging from simple, smooth surfaces to so-called “supersoft” products with an ultra-soft feel reminiscent of natural silk, according to Polyvel. Soft to the touch, pleasing to the eye The process aids are suitable for all products touting soft-touch tactile properties and aesthetic appeal. In addition to hygienic textiles, applications include the automotive, furniture, medical technology, and construction sectors. Polyvel also can accommodate customer-specific applications. Extensive tests by neutral certification and testing laboratories confirm that the additives are safe for use in products that come in contact with human skin, such as diapers, as well as food, said the company. The processing aids are PFAS-free and do not contain any chemicals named on the Substance of Very High Concern list at the European Chemicals Agency (ECHA). Alternatives to conventional plasticizers During extrusion with the help of additive masterbatches such as Polyvel NH-P01, dosages as low as 0.5% are sufficient to achieve elevated levels of softness in PP nonwoven surfaces. The additives can replace conventional plasticizers and the chemicals usually associated with them. The process aids are introduced during the production process, preventing the fibers’ fabric gels from forming a brittle surface with a rough feel after extrusion. The dissolved additive in the PP nonwoven permanently migrates to the fiber’s surface. A distributor of specialty additive masterbatches and custom compounds in thermoplastic applications, Polyvel offers a wide-ranging product portfolio. It said that customers have been focusing, in particular, on additives for processing in-demand bioplastics to add specific technical and functional properties to applications. Polyvel is based near Hamburg, Germany.

On April 15th, U.S. time, the White House website reiterated that due to China's retaliatory measures, goods exported from China to the U.S. are now facing tariffs of up to 245%. As early as April 11, a spokesperson for China's Ministry of Commerce stated that the U.S. imposition of excessively high tariffs on China has turned into a numbers game, holding no practical economic significance. If the U.S. continues with this tariff numbers game, China will not pay it any heed. Actually, the latest statement from the White House "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions." That is, the maximum (up to) tariff that goods going from China to the United States might face could be 245%, not all goods. The number is not a newly imposed tariff, but the result of adding the 100% tariff on some goods (such as syringes, needles) during the 2018 trade war to the additional 145% tariff in 2025. For instance, The New York Times previously illustrated that the tariffs on certain medical products could reach up to 245% due to the==== rule. Attached figure.

In the pursuit of designing new lightweight, flexible, and efficient heat dissipating materials for modern devices, the research team led by the University of Massachusetts Amherst has made a groundbreaking discovery: defects can also create advantages. This research, published in "Science Advances," demonstrates through experiments and theory that polymer composite materials with defective thermal conductive fillers can increase thermal conductivity by 160% compared to similar materials using perfect fillers, completely overturning the traditional perception that "defects must damage performance." Key breakthroughs Disruptive discovery: Defective graphene oxide filler (thermal conductivity only 66.29 W/mK) incorporated into polymer outperforms perfect graphite filler (292.55 W/mK) by 160% Mechanism Innovation: The formation of defects on rough surfaces enhances the vibrational coupling at the polymer/filler interface, reducing thermal contact resistance. Application potential: Opens new pathways for developing ultra-high thermal conductivity polymers, which can solve the heat dissipation problems of devices such as microchips, flexible electronics, and soft robots. Traditional Dilemma: The Limitations of Perfect Packing Materials Polymers, with their lightweight, insulating, and flexible properties, have become core materials in modern technology. However, their **inherently low thermal conductivity (0.1-0.5 W/mK)** has led to serious overheating issues in devices. The academic community has long sought to enhance thermal conductivity by incorporating metal, ceramic, or carbon-based fillers, but the actual results have fallen far short of theoretical predictions. Diamond filler case: Theoretical thermal conductivity should reach 800 W/mK with a 40% loading, but the actual value is only around 10 W/mK. Key limiting factors: filler agglomeration, interfacial contact thermal resistance, low thermal conductivity of polymer matrix Defect Engineering: Turning Disadvantages into Advantages The research team revealed through multi-scale experimental-theoretical approaches that defects play a positive role: Material Design Control group: 5% volume fraction of perfect graphite (292.55 W/mK) Experimental group: 5% volume fraction of defective graphene oxide (66.29 W/mK) Disruptive Outcome The thermal conductivity of polymer composites with defective fillers is significantly higher. Mechanism Analysis: ▶️ Defects causing rough surfaces prevent polymer chains from packing tightly ▶️ Enhanced interfacial vibrational coupling (improved phonon matching) ▶️ Construction of efficient heat flow channels, reducing interfacial thermal resistance Technical Validation System The study employs a four-in-one cross-validation method. Thermal Transport Measurement: Precise Quantification of Material Performance Enhancement Neutron Scattering: Resolving Atomic Scale Vibrational Modes Quantum Mechanics Modeling: Revealing Electron-Level Interactions Molecular Dynamics Simulation: Tracing the Path of Heat Energy Transfer Application Prospects and Significance This discovery provides a novel approach for the design of functionalized polymers. Next-generation electronic devices: Addressing heat dissipation bottlenecks in 5G chips, Micro LED, and more Flexible electronics: Development of high thermal conductivity elastomers for wearable devices Energy Sector: Enhancing the Safety and Efficiency of Battery Thermal Management Systems Aerospace: Manufacturing Lightweight and Efficient Thermal Protection Materials Professor Yanfei Xu, the head of the research team, emphasized: "Defect engineering will become a crucial direction in future materials science. By precisely regulating interface properties, we have the potential to break through the theoretical limits of polymer thermal conductivity."

The European Parliament and Council have provisionally agreed on a regulation intended to keep plastic pellets out of the environment by improving their handling across the supply chain, enforcing measures such as a risk management plan for their packaging. The proposed rules will apply to EU operators and both EU and non-EU carriers. In the latter case, an authorized representative would ensure that non-EU carriers operate on a level playing field with their EU counterparts – and make sure that all plastic pellet carriers are both accountable for and transparent about their operations. A new framework will introduce measures such as a risk management plan to be prepared by each installation handling pellets; these would concern packaging, loading and unloading, staff training, and equipment, among other measures. Industry players will also be held to obligations regarding clean-up operations in the case of accidental losses. Operators handling over 1,500 tonnes of plastic pellets every year will be expected to obtain a certificate from an independent third party. Small companies that exceed the 1,500-tonne threshold will be held to lighter obligations, including one-off certification to be completed in five years after entry into force. Meanwhile, microenterprises and companies handling less than 1,500 tonnes annually will only be required to issue a self-declaration of conformity. These distinctions are expected to simplify compliance for different company sizes without compromising the regulation’s environmental benefits. Not only will these rules apply to companies operating on land, but with 38% of all pellets transported in the EU in 2022 attributed to maritime transport – and in line with ongoing concerns that non-biodegradable pellets entering the oceans can remain for ’decades or more’ – obligations will also be laid out for pellets transported by sea in freight containers. High-quality packaging will be mandatory, and transport and cargo-related information will be provided in accordance with the International Maritime Organization’s guidelines. Anticipated to improve the handling of plastic pellets at every stage of the supply chain, the provisional agreement must now be endorsed by both the Council and Parliament. After a legal and linguistic review, both institutions must formally adopt the regulation and publish it in the Official Journal of the EU. At this point, the regulation will apply two years after its publication; in the case of the maritime sector, the co-legislators have agreed to postpone the rules applying to ocean transport by an extra year. “Microplastics, including plastic pellets are now found everywhere — in our oceans, seas and even in the food we eat,” explains Paulina Hennig-Kloska, Polish Minister for Climate and Environment. “Each year, the equivalent of up to 7,300 truckloads of plastic pellets are lost to the environment. “Today, the EU has taken a landmark step toward reducing pellet pollution by adopting measures to tackle losses and ensure correct handling, including in maritime transport.” A similar measure was introduced in late 2023 when the European Commission banned EU countries from shipping their plastic waste to non-OECD countries – a measure set to ensure the continent takes greater responsibility for its exports, utilizes waste as a resource in line with the Green Deal, and lifts the environmental burden on third countries. In response, the European Recycling Industries’ Confederation (EuRIC) explained that European recyclers would become reliant on treating plastic waste and selling recycled plastics on the European market; it cautioned that ‘unbalanced pressure’ on recyclers could push companies to relocate outside of Europe and cause the continent to miss its legally binding recycling and recycled content targets, among other impacts. More recently, the Single-Use Plastics Directive’s recycled content mandates came into effect this year; we spoke to Matt Tudball, Helen McGeough, Valentina Di Micco and Carolina Perujo Holland from ICIS to learn more about the impacts it has already had on the market and discuss ongoing areas of uncertainty.

Global energy and chemical industry market information service agencies recently stated that American chemical companies are facing profit contraction due to fluctuations in oil and natural gas prices, while also dealing with issues related to tariffs and economic uncertainty. Analyst Koze Olko stated that the key driving factor behind the rise in U.S. gas prices is the surge in liquefied natural gas (LNG) demand from Europe and the Asia-Pacific region. Due to the strong growth in electricity demand from data centers, U.S. natural gas supply may tighten further. In contrast, oil demand is expected to decline due to accelerated supply growth from non-OPEC producers such as the U.S., Brazil, and Guyana, the rapid adoption of electric vehicles, and a slowdown in economic growth, which may lead to a drop in oil prices. It is estimated that the average price of Brent crude oil will drop by 6.7% in 2025 and by another 7.4% in 2026; the average price of WTI will also drop by 6.7% in 2025 and by another 7.9% in 2026. The cost of chemical raw materials in the United States, especially ethane, will fluctuate with the rise and fall of gas prices. It is estimated that the average price of natural gas in the United States will increase by 66.8% in 2025 and by another 3.9% in 2026. The trends of both will inevitably squeeze the profit margins of U.S. ethylene producers. However, the demand for ethylene is declining. Tariffs have increased the import costs of raw materials used to make catalysts and plastic additives, and the EU and Canada may impose retaliatory tariffs on polyethylene exported from the United States. Peter Huntsman, CEO of U.S. chemical producer Huntsman Corporation, expects that the rebound in the U.S. real estate market may be delayed due to uncertainties over tariffs and mortgage interest rates, and the demand for ethylene from the construction industry will continue to be weak, further exacerbating the instability in the ethylene market.

Building a viable circular economy is only possible when innovative leaders have the confidence to cooperate. Extensive resources and investments are required to create progressive solutions that can truly support the efficiency and scalability demanded by the global packaging industry. Working together is key. Progressive solutions are what will future-proof the packaging industry, yet the ever-stricter legislation regarding packaging materials means innovation is needed now more than ever. According to a recent EU report, bio-based materials have been acknowledged as having ‘high potential’, the EU is increasing mandatory percentages of recycled content in packaging, and many studies show that better cost competitiveness is required for bio-based solutions. But how do you find the type of pioneering partners that bring undeniable value? And how do you make that cooperation mutually beneficial? It's easier said than done. Finding the right people with the right ideas is tricky, especially when companies are understandably protective of their developments. For Pont, meeting Blue Ocean Closures at a respected packaging industry trade exhibition proved to be a true meeting of minds—and resources! With Pont an established European glass and plastic packaging supplier and Blue Ocean Closures a Sweden-based technology start-up with a clear sustainability purpose, the potential combination of Pont’s strong reputation for delivering sustainable solutions across Europe and Blue Ocean Closures’ biobased fibre closures was quickly evident. Jacquelien Spenkelink, Purchase Director at Pont, shares how their ‘enthusiastic partnership’ has progressed. “Promoting this amazing new closure is easy; it recently won the Sustainability Award at the Packaging Innovation Show in Birmingham, UK, where it was presented on a 100% rPET PETPacker jar from Pont! Brands that value sustainability want a solution like this, and Pont is here to help.” Ulrika Evermark, Chief Communications & Relations Officer at Blue Ocean Closures, agrees, saying, “There’s never been this type of product on the market before! It’s a biobased closure that is made from cellulose and is easily recyclable in the standard paper recycling stream. It’s got the look and feel of paper, so consumers are quickly comfortable with it, but it’s also strong and food safe. It’s a ‘drop in’ solution too, as it’s just an exchange. There are no technical modifications needed or equipment changes, you just need to switch out the box of closures. We currently offer a 38ml closure and we’re about to introduce a 45ml option.” Proud to pioneer Pont is proud to be bringing this progressive, pioneering closure to its customers across Europe, with the ability to quickly deliver this sustainable solution from its wide network of warehouses and distribution centres. Jacquelien continues, “This is what I’m really excited about; getting Blue Ocean’s strong, biobased closure to the wider market, exactly where it belongs! We work with many of Europe’s leading nutraceutical and VMS [Vitamins, Minerals and Supplements] brands, who truly value the synergy of sustainable packaging with their high-quality products.” This synergy is a driving force in the collaboration between Pont and Blue Ocean Closures, whose biobased closures are already being used by forward-thinking brands, including Absolut Vodka, L’Oreal and Pernod Ricard. Ulrika adds, “We’re certainly developing into different markets, with the common denominator being brands – and their customers - that value provable sustainability. Our closures are 95% natural, with hydrophobicity additives that are already found in other food and personal care packaging but no fillers. They help protect the food from interaction with water or moisture through coating, dispersion, and lamination. They’re beautiful and strong, produced in an efficient process; simple and scalable.” By ensuring this sustainable cellulose closure is ‘simple and scalable,’ Blue Ocean Closures is meeting Pont where it is already well known. Working together to bring biobased packaging jars and closures to food, beverage, and personal care markets across Europe, utilising a solid reputation for efficiently delivering complete sustainable packaging, is the very definition of a win-win situation.

Introduction: The deepening game of tariffs between China and the US, how does the "tariff war" affect the import volume of EVA from the United States and the photovoltaic industry closely related to EVA? On April 2, local time, U.S. President Trump signed two executive orders at the White House regarding the so-called "reciprocal tariffs," announcing a 10% "minimum baseline tariff" on trade partners. Additionally, Trump will impose personalized higher "reciprocal tariffs" on countries with the largest trade deficits with the U.S., with a 34% reciprocal tariff specifically on China. On April 4, China announced a 34% tariff on all goods imported from the U.S. The tariff policy game between China and the U.S. continues to deepen. What impact will the "tariff war" have on the import volume of EVA from the U.S. and the photovoltaic industry closely related to EVA? 1. The import pattern of EVA changes under the pressure of tariffs. Data source: General Administration of Customs In 2024, the total import volume of EVA was 915,900 tons, down 34.21% year-on-year, hitting a five-year low. China has multiple trade partners for EVA imports, with the United States ranking fifth, accounting for 5.97% of imports. After the imposition of additional tariffs, the cost of importing EVA from the United States has increased significantly, and trade barriers have been significantly upgraded. Under the dual pressures of cost and policy, it is expected that the import volume of EVA from the United States will decrease. This change brings opportunities for China's EVA production enterprises, and the market share of domestic EVA products will further increase. II. "Reciprocal Tariffs" Put Pressure on Photovoltaic Industry From the table above, it can be seen that the United States has imposed "reciprocal tariffs" of 32%, 36%, 46%, and 49% on products from trade partners such as Indonesia, Thailand, Vietnam, and Cambodia. This policy continues the United States' long-standing resistance to Chinese photovoltaics and includes the main photovoltaic manufacturing countries in Southeast Asia under high tariffs. According to data from the U.S. Energy Information Administration (EIA), the total import volume of photovoltaic components in the United States in 2024 is 48.7GW, with Southeast Asia's share dropping to 65%, and China's direct export share rebounding to 12% (about 5.8GW), but the scale of Chinese enterprises transferring through third countries such as Mexico and Turkey reaches 8.3GW, accounting for 17% of U.S. imports. The highest proportion of photovoltaic component imports in the United States is still in Southeast Asia, however, 80% of Southeast Asia's photovoltaic capacity is invested and constructed by Chinese enterprises. EVA, as an important upstream raw material for photovoltaic components, the impact of tariffs on photovoltaic components will indirectly affect EVA products. U.S. "reciprocal tariffs" have taken effect, causing a surge in the cost of imported photovoltaic modules. This has suppressed domestic photovoltaic installation demand in the U.S., leading to a decline in imports from Southeast Asia. At the same time, the capacity of Chinese companies in Southeast Asia has been impacted, and the volume of photovoltaic products transshipped through third countries to the U.S. may be affected. The challenges faced by China's photovoltaic industry in the U.S. market have intensified. Despite the uncertainty in the Sino-US tariff game, the trend of global energy transition towards clean and low-carbon remains unchanged. As long as China's EVA and photovoltaic industries adhere to innovation-driven and open cooperation, they can turn challenges into opportunities in the global energy transformation, achieve high-quality and sustainable development, and contribute Chinese strength to the global clean energy cause.

On March 27, BASF announced the commissioning of the world's first commercial Loopamid plant. The production facility located at the Caojing site in Shanghai, China, has an annual capacity of 500 metric tons, marking an important step toward sustainable product supply in the textile industry. "The launch of this facility once again demonstrates BASF's innovative strength," said Dr. Stephan Kothrade, Member of the Board of Executive Directors and Chief Technology Officer of BASF. "As an integral part of our strategy, we use chemistry to develop solutions that address the biggest challenges of our time. Loopamid transforms textile waste into valuable resources, helping to conserve raw materials and close the loop in the textile cycle." Loopamid is a recycled polyamide 6 entirely based on textile waste. The new production facility supports the textile industry's growing demand for sustainable polyamide 6 fibers. "I am proud of our team, who have worked with great enthusiasm and dedication to bring loopamid to commercialization," said Ramkumar Dhruva, President of BASF's Monomers business unit. "The technology behind loopamid allows for textile-to-textile recycling of polyamide 6 in various fabric blends, including those mixed with elastic fibers. I believe loopamid not only makes a significant contribution to the textile circular economy but also helps our customers achieve their sustainability goals." Factory and Loopamid product GRS certification The new Loopamid factory integrated into the Shanghai Caojing Polyamide-6 plant. The production quantities of both the factory and Loopamid are in accordance with the Global Recycle Standard (GRS). This certification assures consumers and textile manufacturers that Loopamid is made from recycled materials and that the production process meets specific environmental and social standards. Additionally, the first yarn manufacturers are successfully using Loopamid. Industrial and consumer textile waste As the foundation of loopamid To produce Loopamid in the new factory, BASF is currently utilizing industrial textile waste from the textile production process and will gradually increase the share of post-consumer waste. These materials include cut edges, defective cut edges, leftovers, and other production textile waste from the textile industry. These materials are collected and provided to BASF by customers and partners. Discarded clothing made from polyamide 6 and other textile products can also be used for Loopamid production. All these waste materials are difficult to recycle because they typically consist of mixtures of different fibers, materials, dyes, and additives. Furthermore, for post-consumer waste recycling, buttons, zippers, and accessories must be removed in advance. BASF collaborates closely with partners and customers to accelerate the development of collection and sorting systems. About Loopamid BASF has developed an innovative solution through Loopamid to enhance the circularity of the fashion industry and recycle polyamide 6 textile waste. Thanks to its ability to tolerate all fabric mixtures including PA6 and elastane fibers, the technology behind Loopamid allows for textile-to-textile recycling of both post-industrial and post-consumer textile waste. Fibers and materials can be recycled multiple times, while maintaining material properties equivalent to those of traditional virgin polyamides.

Gluten-free baking brandHappy CampersTranslating the above content from Chinese to English and outputting the translation result directly without any explanation.Verde BioresinsCooperationLaunched a new type of soft packaging made from biobased, landfill biodegradable resin. Both companies pointed out that this cooperation offers an alternative to traditional plastics, aligning with Happy Campers' sustainability goals while maintaining product integrity and shelf life. According to two companies, Verde Bioresins, a materials innovator specializing in sustainable polymer technology, provides proprietary resins for new films. This material, branded as PolyEarthylene, is derived from renewable plant resources and is designed for anaerobic biodegradation in landfill environments. The company states that it has thermal stability and reusability, making it an ideal choice for both disposable and durable product applications. According to the two companies, the formula promotes microbial activity by colonizing and breaking down landfill microorganisms into organic matter, thus accelerating the decomposition process. Brian Gordon, President of Verde Bioresins, stated that the company is focused on developing scalable, sustainable solutions to address the entire lifecycle of plastic products. "The collaboration with Happy Campers demonstrates how brand owners can reduce plastic pollution without compromising performance or compatibility with existing infrastructure," Gordon said. Material performance and regulatory compliance Two companies stated that the new packaging combines biodegradability and recyclability, positioning it as a dual-path disposal solution. The main technical attributes include: Biodegradability of landfills: Carefully designed, it can be decomposed under anaerobic landfill conditions, reducing stubborn plastic waste. recyclability: Compatible with recycling streams for low-density polyethylene (LDPE) under resin identification code 4. Toxicology Safety: Free of PFAS, BPA, heavy metals, and phthalates; fully compliant with California Proposition 65. Food Contact Safety: Compliant with applicable FDA food contact requirements in Chapter 21 of the U.S. Code of Federal Regulations. The Challenges of Compostable Packaging Two companies explained that compostable packaging is often considered a sustainable solution, but it faces significant disposal challenges in practice. Most compostable materials require industrial composting facilities that maintain controlled temperatures, humidity, and microbial conditions - capabilities that are not universally available. In addition, the two companies pointed out that contamination issues often lead to these materials being landfilled, where they cannot effectively decompose. Verde says its PolyEarthylene is designed for real-world disposal conditions. The company says its ability to break down in traditional landfill environments makes it a more pragmatic choice for brands looking to reduce their environmental impact without compromising on recyclability or food safety. This dual functionality makes it especially attractive to consumer packaged goods (CPG) companies operating in markets with limited composting infrastructure, the two companies concluded. Partnership, Mergers In February, Verde announced collaboration with Translate.Mr. Chain, a US plastic barrier chain and post manufacturer, collaborates with Mr. Chain to launch Mr. Chain's EarthMade plastic chain series, which is made from Verde's earth-polyethylene resin. According to partners, this collaboration offers a sustainable material option. The partnership follows Verde Bioresins' merger agreement with Nxu Inc. in early February.Achieved.This is an electric vehicle charging station supplier located in Tempe, Arizona. "We are very excited about the merger with Nxu, a company at the forefront of sustainable transportation solutions," Gordon said at the time. "Verde is ready for significant growth by 2025, and the business combination with Nxu is an important milestone in achieving this goal." "The merger with Verde is an exciting opportunity to create long-term value," said Nxu Founder, Chairman, and Chief Executive Officer Mark Hanchett in announcing the merger. "Verde's PolyEarthylene resin is generating interest across the entire plastics market, and its potential for disruption is inspiring."

Following President Trump's announcement regarding imports Imposing higher tariffs, the global automotive industry is already preparing for the tough times ahead. The latest developments in Europe may make the situation worse, as the EU has uncovered another major scam in modern automotive history. In the past day, the European Commission has imposed a total fine of 458 million euros (approximately 3.635 billion yuan) on 15 large car manufacturers operating in Europe and the European Automobile Manufacturers Association (ACEA) for their involvement in "a long-standing End-of-Life Vehicles (ELV) recycling monopoly alliance". All these companies admitted to participating in the monopoly alliance and agreed to settle. Mercedes-Benz was also part of the cartel, but the company was granted full immunity as a key whistleblower, saving it from a 35-million-euro ($282-million) fine. Some well-known car manufacturers, including Stellantis (and its subsidiary Opel), Mitsubishi, and Ford, received certain reductions in fines for cooperating with the European Commission. EU Directive on End-of-Life Vehicles (ELV) End-of-Life Vehicles (ELVs) refer to cars that are no longer suitable for road use due to age, wear, or damage. These vehicles are typically dismantled and processed accordingly to achieve goals of recycling, reusing, and properly disposing of them, thereby reducing waste generation and recovering valuable materials such as metals, plastics, and glass. This effort is aimed at better supporting the European Union's decarbonization and recycling objectives. The European Union passed the 2000/53/EC Directive on end-of-life vehicles (the "ELV Directive") in 2000, which began to be implemented in 2002. Every year, millions of cars are scrapped in Europe. If end-of-life vehicles are not managed properly, they can pose a threat to the environment and lead to a significant loss of materials. The introduction of the directive aims to minimize the environmental impact of end-of-life vehicles and improve the environmental performance of all economic operators involved in the vehicle life cycle. The directive contains regulations on the collection, treatment, recycling, and reuse of end-of-life vehicles. The European Union's End-of-Life Vehicles (ELV) directive is set to undergo a major revision, with the new ELV directive on the horizon. Since the EU's publication of the "Circular Requirements for Vehicle Design and End-of-Life Vehicle Management" (the "new ELV directive") proposal on July 13, 2023, it has attracted widespread attention from global automotive companies. On January 29, 2025, the European Parliament officially released the draft report on the resolution of the new ELV directive proposal, with the legislative process continuing to advance. The draft mentions the following key amendments: Recycled Plastic Proportion Adjustment:The new ELV directive aims to increase the use of recycled plastics in vehicles. The European Commission initially proposed a 25% recycled plastic ratio for new cars, but the European Parliament considered it to be "reasonable and realistic" and reduced the ratio to 20%. At the same time, the proportion of recycled plastics from scrapped vehicles also dropped from the originally proposed 25% to 15%. Expansion of sources for recycled plastics:The sources of recycled plastics have been expanded in the revised version. To achieve the 20% quota, manufacturers can now use pre-consumer, post-consumer waste plastics, and bio-based plastics in addition to the original sources, making it more flexible to achieve sustainability goals. Redefinition of plastic types:The revised regulations stipulate that only thermoplastic and polyurethane foam plastics are considered as plastics. Since thermoset plastics are difficult to recycle, including them would increase industrial costs. This ensures that only recyclable plastics are counted towards the target, and allows for adjustments to the regulations based on future advancements in recycling technology. Strengthen supervision and evaluation:The European Parliament has called on the European Commission to develop standard methods for calculating and verifying the recycled content within 12 months of the entry into force of the regulation, taking into account advanced technologies such as chemical recycling, and to introduce digital product passports to improve the traceability of recycled plastics. Punishment Reason The monopoly alliance began in May 2002 and lasted until September 2017, spanning 15 years. According to the investigation results of the European Commission, 16 major car manufacturers, including Mercedes-Benz, which was not fined, reached an anti-competitive agreement with the European Automobile Manufacturers Association (ACEA) and acted in concert in the field of end-of-life vehicle recycling. Specifically, these automakers have improper collusion in the following two aspects: The "zero processing cost" strategy: They unanimously agreed not to pay vehicle dismantlers for processing end-of-life vehicles, believing that the recycling of end-of-life vehicles is a profitable business and thus no service fees need to be paid. Additionally, these companies shared commercially sensitive information with vehicle dismantlers and coordinated their actions towards the dismantlers. Concealing recycling information: They decided not to publicize the quantity of recyclable parts in scrapped vehicles, the reuse rate, or the use of recycled materials in new cars. The aim is to prevent consumers from considering these environmental factors when purchasing vehicles, thereby reducing the competitive pressure on companies due to environmental requirements. According to the current European Union End of Life Vehicles (ELV) directive - 2000/53/EC, the last owner of a scrapped vehicle has the right to hand it over to dismantlers for free, and car manufacturers are obliged to bear the relevant costs if necessary. In addition, car companies are obliged to inform consumers about the recyclability of the vehicle.

Visy’s fibre-based thermal insulation liner is intended to replace expanded polystyrene (EPS) with a kerbside recyclable alternative while maintaining the protective properties of conventional solutions. Citing the Australian Packaging Covenant Organisation (APCO)’s assertion that less than 20% of EPS is recycled in Australia, Visy emphasizes that its Visycell insulation is made from cardboard waste offcuts and is certified as recyclable in kerbside recycling bins by APCO. This means it can display the Australasian Recycling Logo (ARL). At the same time, it is said to share the ‘strong’ thermal and cushioning qualities of conventional EPS solutions, and has been designed to keep temperature-sensitive food and beverages fresh and safe to consume in the Australian heat. The solution has also been designed to be flat-packed in order to help businesses cut down on transportation costs. Apparently, Visycell has been the subject of ‘rigorous’ testing to ensure it meets the ‘highest’ standards. It is hoped to ‘significantly’ lessen the amount of EPS entering landfill or the natural environment annually. The liner is currently being trialled by food delivery businesses in a bid to phase ‘problematic’ EPS out of their operations. “We’re working hard to help customers ditch problematic polystyrene and we’re pleased to be trialing Visycell as a new alternative,” says Rolland Zhang, new business projects manager at Visy. “We think food and beverage customers will love Visycell—it will keep their product safe and fresh during transportation, is easily recycled and is locally made. “We know it’s not just food and beverage companies wanting to ditch polystyrene, which is why Visycell has the potential to also be used to transport fragile goods and in building construction.” Earlier this year, DS Smith unveiled TailorTemp, a recyclable, fibre-based, and temperature-controlled packaging solution set to replace EPS alternatives. Both the outer box and insulant materials are made of corrugated cardboard, offer a 36-hour cooling period, and can be shipped to customers in flatpack format. 2nd Level Global Solutions also revealed Solaris, a range of recyclable, paper-based thermal pallet covers set to protect palletized goods against temperature fluctuations in transit. Designed to address plastic waste in the logistics sector, it is designed to resist water and tearing and provide up to 7.5 hours of protection at 40°C. Alternatively, a biobased additive from DGeo and Lifoam Industries is designed to break down temperature-controlled expanded polystyrene impact packaging; this is then believed to break down by 92% in a four-year period without leaving microplastics behind.

On March 10th, the U.S. textile recycling startup Circ completed its latest funding round of $25 million. This round of funding was led by Taranis through its Carbon Ventures fund, with existing strategic investors including Inditex, the parent company of Zara, Avery Dennison, and others participating in the round. Circ states that the basis for this financing is the company's significant technical and commercial progress over the past 18 months. The new funds will help the company expand the scale of its recycling technology applications and continue to move forward towards achieving its goals and missions, turning the waste problem in the fashion industry into circular solutions. Established in 2011, Circ is headquartered in Danville, Virginia, the former textile production center of the United States. Through patented technology, the company recycles fashion waste into textiles to reduce the demand for raw materials used in clothing production. Circ's technology is capable of breaking down textiles and recycling cotton and polyester fibers, maintaining their integrity while transforming them into new materials. As one of the few companies capable of recycling polyester-cotton blended materials for reuse in textile production, Circ has successfully collaborated with companies such as Zara, Mara Hoffman, United Arrows, and Christian Siriano. Recycling polyester-cotton blends is currently one of the main challenges faced by the industry, as this type of fabric represents a significant portion, yet less than 1% of it is currently being recycled. Circ is on track to launch its first industrial-scale blended textile recycling factory, and this financing brings more than just funds. Taranis, a company under the Perenco Group, will also share its expertise in developing and operating large-scale industrial projects. Taranis is an investment and asset management company dedicated to sustainable industrial solutions, and it believes that Circ's model is a key step in reducing the environmental impact of global supply chains. In addition to financial investment, Taranis also directly validates Circ's processes to accelerate the transition from demonstration scale to industrial-scale production. Circ's CEO Peter Majeranowski said, "Circ's journey to industrialization requires us to build on mature technologies with the engineering, operational expertise, and strategic investment of like-minded partners. Their industrial know-how combined with our innovation enables Circ to accelerate the transition to a circular fashion economy."

After being hit with a 46% tariff increase by the U.S., Vietnam is now in talks with the U.S. for a 0% tariff agreement. General Secretary Su Lin of the Vietnam Communist Party said that Vietnam is prepared to lower its tariffs to zero, and has asked the United States to do the same. Vietnamese official media reported that General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong, and U.S. President Donald Trump have agreed to discuss and sign a bilateral agreement to implement a zero-tariff commitment. Former President Trump posted on social media platform X: "I just had a conversation with General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong. It was very constructive. He told me that as long as Vietnam and the U.S. can reach an agreement, Vietnam is willing to reduce tariffs on the U.S. to 0. On behalf of the United States, I thank him and look forward to a formal meeting in the near future."

[Policy Background] On April 2, 2025, the U.S. government announced the imposition of "reciprocal tariffs" on Chinese goods imported into the United States. On April 4, 2025, the State Council Tariff Committee issued an announcement that starting from 12:01 on April 10, 2025, tariffs would be imposed on imported goods originating from the United States. The relevant matters are as follows: 1. An additional 34% tariff will be imposed on all imported goods originating from the United States based on the current applicable tariff rates. 2. The current bonded and preferential tax policies remain unchanged, and the additional tariffs imposed this time will not be exempted. 3. For goods that have been shipped from the place of departure before 12:01 on April 10, 2025, and are imported between 12:01 on April 10, 2025, and 24:00 on May 13, 2025, the additional tariffs stipulated in this announcement will not be imposed. The import of raw materials from the United States into China, subject to a 34% tariff, will have multi-faceted effects on domestic metallocene polyethylene. 1. Supply gap and price increase According to********statistics, North America is currently the world's leading producer of metallocene polyethylene, followed by Southeast Asia and Northeast Asia. In the North American and Southeast Asian production areas, ExxonMobil has a higher capacity share, followed by Dow; in the Northeast Asian production area, South Korea and China have leading capacities, but China's effective capacity is low, and regional supply shortages often rely on imports. North America is a resource-exporting region, with the United States having the largest export volume. According to statistics, the production capacity of polyethylene in the US is close to 7 million tons, and its products are mainly exported to South America, Southeast Asia, and China. According to a survey by Longzhong Information, imports from the US account for about 25% of China's polyethylene imports. In the short term, the rise in import costs from the US will have a certain impact on domestic polyethylene prices. The imposition of tariffs will directly increase the price of its products in the Chinese market, weakening their competitiveness. 2. Adjustment of Import Structure and Acceleration of Domestic Production Currently, China's imports of polyethylene from Majors mainly come from Singapore, Thailand, the Middle East, South Korea, and the United States. In the future, with the increase in import costs from the United States, the proportion of imports from other production areas will rise accordingly. In 2025, the ExxonMobil Huizhou facility will commence production, which will replace imports from Singapore and North America. Resources from North America and Singapore, aside from self-use, will flow to Europe and other countries. Additionally, as Singapore serves as a major transshipment hub, some goods from the Middle East and North America are stored and transshipped in this area; in the future, with the increase in import costs from the United States, the transshipment proportion in Singapore will also rise. Domestic companies (such as Sinopec, CNPC, and private enterprises) have already entered the production of metallocene polyethylene, but the capacity remains limited (in 2024, the domestic share was less than 30%). Tariff policies will encourage local companies to join the production of metallocene polyethylene, but technical barriers (such as severe product homogenization and a single product range) may slow down the substitution rate. 3. Increased costs of downstream raw materials and terminal products Based on the earlier situation of the United States imposing additional tariffs, the 10% tariff increase starting from March 4th in the United States mainly involves plastics products under Chapter 39 of the United States Harmonized Tariff Schedule (HTS), including plastic daily necessities such as storage boxes, children's toys, and bathroom products. According to statistics, in 2024, the proportion of China's export volume of plastic products to the United States in the total export volume fell to 20.48%, and the proportion of export value fell to 21.28%. After the United States imposed additional tariffs, the overall trend of China's plastic products export value to the United States will continue to decline. Domestic metallocene polyethylene is mainly used in agricultural film, food and daily chemicals, floor heating pipes, industrial packaging and other fields. Imported metallocene polyethylene is mostly used in high-end film fields, where the proportion of imported metallocene added in single material films is relatively high, leading to an increase in raw material costs and export costs, resulting in a significant reduction in enterprise profits, forcing downstream companies to accept high prices or seek alternative raw materials. Overall, the impact of US tariff increases on China's market for metallocene polyethylene products is multi-faceted. The rise in import costs from North America will inevitably lead to changes in global trade patterns. Currently, China imports most of its metallocene polyethylene from Southeast Asia and the Middle East. In recent years, imports of metallocene polyethylene from North America have been decreasing, so the impact of tariff increases on China is limited. In the short term, domestic high-end polyolefin products are still in the process of breaking through the "chokepoint," and complete substitution of imports will require time. However, the startup of the Exxon plant in Huizhou will reduce the import cost of China's metallocene polyethylene, easing the cost pressure on downstream enterprises. Although it will have some impact on the supply of China's metallocene polyethylene market in the short term, from a long-term perspective, it also provides an opportunity for the restructuring and transformation and upgrading of China's metallocene polyethylene industry.

On April 4, the State Administration for Market Regulation of China announced that DuPont China Holding Co., Ltd. is being investigated for suspected violations of the Anti-Monopoly Law of the People's Republic of China. The market regulation authority has initiated a formal investigation against DuPont China Holding Co., Ltd. in accordance with the law. The specific reasons are still unknown, but against the backdrop of China's strong emphasis on foreign investment, the investigation into DuPont China may highlight China's determination to create a fairer market environment or have profound effects on the operating models of multinational companies in China. It is reported that DuPont established its office in Beijing in 1984 and set up its first wholly foreign-owned enterprise, DuPont China Group Limited, in Shenzhen in 1988, becoming the first wholly foreign-owned investment company approved by the Chinese government. It is reported that by 2025, DuPont will have more than 40 wholly-owned and joint ventures in China, covering the entire industrial chain from basic chemical materials to high-end automotive and electronic solutions. Some of the core brands mainly include: Kevlar®: para-aramid fiber, mainly used for protective equipment, industrial and technological applications, and sports equipment. Nomex®: meta-aramid fiber, whose needle-punched products are mainly used as high-temperature filtration materials and insulation materials; Tyvek®: A 100% high-density polyethylene nonwoven fabric produced using flash-spun technology, featuring waterproof, breathable, tear-resistant, and eco-friendly recyclable properties. It has a smooth surface suitable for printing and is used in medical, industrial, and active packaging applications. Cyrel®: Focused on flexographic printing solutions, especially optimized printing plates for UV-LED technology. Artistri®: Water-based digital printing inks covering textiles, packaging, and commercial printing; Corian®: artificial stone material; Tedlar®: Polyvinyl fluoride (PVF) film, used in photovoltaics, etc. MOLYKOTE®: Special Lubricating Oil; Liveo™: Silicone elastomers, silicone skin adhesives, transdermal adhesives and other silicone applications; Solamet®: Photovoltaic conductive paste However, in terms of popularity, apart from nylon and aramid, DuPont also has globally leading products such as Dupont™ Teflon (polytetrafluoroethylene), Riston™ (dry film photoresist technology), Kapton® (high-temperature resistant polyimide film), Pyralux® (polyimide flexible circuit materials), Kalrez® (perfluoroelastomer seals), and Delrin® homopolymer acetal. DuPont's base layout in China is centered around the Yangtze River Delta (Shanghai, Jiangsu, Zhejiang) and the Pearl River Delta (Guangdong), radiating nationwide. Among them, the most well-known is the DuPont Zhangjiagang base, located in the Yangtze River International Chemical Industrial Park of Zhangjiagang Free Trade Zone. The products include Zytel® nylon engineering plastics, Delrin® homopolymer formaldehyde resin, Hytrel® thermoplastic polyester, Multibase thermoplastic elastomer (TPE), lubricants, and special organic silicone materials. It has also established the Zhangjiagang adhesive integration project, with the main products being adhesives and related materials. BETAFORCE™ TC thermally conductive adhesive and BETATECH™ thermally conductive gap filler—supporting battery thermal management in hybrid and electric vehicles during charging and operation. (2) BETAFORCE™ Composite Adhesive - For Battery Sealing and Assembly; (3) BETAMATE™ Wide Bake Temperature Adhesive and Structural Adhesive – Used for automotive body structures and battery bonding, it enhances the vehicle's crash resistance and reduces the weight of the body structure. Adhesives play a pivotal role in the automotive industry. According to data from the China Adhesives and Tape Industry Association, the adhesive usage per vehicle in new energy vehicle power battery assembly (including PACK sealing, structural thermal conduction, structural bonding, BMS protection, cell bonding, battery potting, thread locking, and shell bonding) will reach approximately 5 kilograms. Additionally, automotive electronics (such as power inverters, control modules, displays, reverse radar systems, etc.) are another major application area for adhesives. Among these, thermal conductive adhesives are particularly important—the greater the computational demand, the higher the thermal conductivity requirements, and the more thermal conductive adhesive is used. In addition to being placed under investigation, on the same day, April 4th, the Tariff Policy Committee of the State Council issued an announcement to impose an additional 34% tariff on all imported goods originating from the United States, based on the existing applicable tariff rates. DuPont, which owns many market-leading products, will also be affected. In 2024, DuPont's total net sales were $12.386 billion (approximately 90.5 billion yuan), with the Greater China region accounting for 18% of the revenue. Given the importance of this market, how will DuPont China respond to the current crisis?

China's countermeasures are here! Today, in response to the US government's announcement of imposing "reciprocal tariffs" on Chinese goods imported to the US, China has issued countermeasures. The State Council's Tariff Commission announced that all imports originating from the United States will have an additional 34% tariff imposed on the current applicable tariff rates. In addition, the Ministry of Commerce and the General Administration of Customs have taken six coordinated actions, including adding 16 US entities to the export control management list, implementing export controls on medium and heavy rare earth items, suspending the import qualification of products from six US companies, adding 11 US companies to the unreliable entity list, initiating an investigation into the competitiveness of the import of medical CT tubes, and filing a lawsuit against the US "reciprocal tariffs" at the World Trade Organization. Impose an additional 34% tariff on all imported goods originating from the United States on top of the currently applicable tariff rates. On April 2, 2025, the US government announced that it would impose "reciprocal tariffs" on Chinese goods exported to the US. The US approach does not conform to international trade rules, seriously damages China's legitimate rights and interests, and is a typical unilateral bullying practice. In accordance with the Customs Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China, and other laws and regulations, as well as the basic principles of international law, with the approval of the State Council, the Tariff Committee of the State Council has decided to impose additional tariffs on imported goods originating from the United States starting from 12:01 a.m. on April 10, 2025. The relevant matters are as follows: 1. An additional 34% tariff will be imposed on all imported goods originating from the United States, based on the current applicable tariff rates. The current bonded and tax reduction/exemption policies remain unchanged, and the tariffs imposed this time will not be reduced or exempted. Goods that have been shipped from the place of departure before April 10, 2025, at 12:01 PM and imported between April 10, 2025, at 12:01 PM and May 13, 2025, at 11:59 PM will not be subject to the additional tariffs imposed by this announcement. Export controls on certain medium and heavy rare earth-related items Ministry of Commerce and General Administration of Customs Announcement No. 18 of 2025, announcing the decision to implement export controls on some medium and heavy rare earth-related items. A spokesperson for the Ministry of Commerce answered questions from journalists about the implementation of export controls on medium and heavy rare earth-related items, stating that in accordance with the "Export Control Law of the People's Republic of China" and other relevant laws and regulations, on April 4, the Ministry of Commerce, together with the General Administration of Customs, issued an announcement on the implementation of export control measures for 7 categories of medium and heavy rare earth-related items such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which will be formally implemented from the date of publication.   The Ministry of Commerce has added Scideate Company and 11 other U.S. companies to the unreliable entity list. The Ministry of Commerce today (4th) announced the inclusion of 11 American companies, including Skydio, in the unreliable entity list work mechanism. In order to safeguard national sovereignty, security, and development interests, and in accordance with relevant laws such as the "Foreign Trade Law of the People's Republic of China," the "National Security Law of the People's Republic of China," and the "Anti-Foreign Sanctions Law of the People's Republic of China," the unreliable entity list work mechanism, based on Article 2, Article 8, and Article 10 of the "Regulations on Unreliable Entity List," has decided to include Skydio and other 10 entities in the unreliable entity list and implement the following measures: I. Prohibition of the aforementioned enterprises from engaging in import and export activities related to China; 2. Prohibit the aforementioned enterprises from making new investments within China. Any matters not addressed in this announcement shall be carried out in accordance with the provisions of the Unreliable Entity List. This announcement will be implemented from the date of publication. The 11 U.S. entities listed on the Unreliable Entity List 1. Skydio Inc. BRINC Drones, Inc. Red Six Solutions Company Senix Company (SYNEXXUS, Inc.) 5. Firestorm Labs, Inc. 6. Kratos Unmanned Aerial Systems, Inc. 7. Havoc Artificial Intelligence Company (HavocAI) 8. Neros Technologies 9. Domo Tactical Communications 10. Rapid Flight LLC 11. Insitu, Inc. General Administration of Customs: Suspends the export qualifications of six U.S. companies involved in the incident to China The General Administration of Customs today issued announcements No. 54 and No. 55, deciding to suspend the import qualification of sorghum from one U.S. related company, the import qualification of poultry meat and bone meal from three U.S. related companies, and the import qualification of poultry meat products from two U.S. related companies, in order to protect the health of Chinese consumers and ensure the safety of China's livestock production due to the inspection and quarantine issues of the related imported products. The Ministry of Commerce: 16 American entities are included in the export control management list. In order to safeguard national security and interests, and fulfill international obligations such as non-proliferation, according to the relevant provisions of the "Export Control Law of the People's Republic of China" and the "Regulations on the Export Control of Dual-Use Items and Technologies" and other laws and regulations, the Ministry of Commerce has announced a decision to include 16 American entities in the export control management list, prohibiting the export of dual-use items to them. These entities may engage in actions that endanger China's national security and interests, and no exporter may violate the above regulations. Ministry of Commerce Spokesperson's Response to Media Inquiry on the Initiation of an Industrial Competitiveness Investigation into Imported Medical CT Tubes Commerce Ministry spokesperson answers journalists' questions on industrial competitiveness investigation into imported medical CT tubes. A reporter asked: We have noticed that the Ministry of Commerce website issued an announcement to initiate an industrial competitiveness investigation on imported medical CT tube assemblies. Could you provide some information on the relevant situation? Answer: This investigation was the first industrial competitiveness investigation initiated by the Ministry of Commerce in response to an application from the domestic industry. According to Article 36 of the "Foreign Trade Law of the People's Republic of China," the Ministry of Commerce may conduct investigations into the impact of imports on the domestic industry and its competitiveness. The preliminary evidence submitted by the applicant shows that the Chinese medical CT tube industry started relatively late and is in the development stage. The domestic industry faces difficulties in operations due to the impact of imported products, and its competitiveness is adversely affected. Based on this, the applicant requests the Ministry of Commerce to investigate the impact of imports on the domestic industry and its competitiveness. I would like to emphasize that the industrial competitiveness survey is a factual investigation. This survey is not aimed at specific countries and regions, and it does not affect normal trade. The investigating authority will fully protect the rights of all interested parties and conduct the investigation objectively and fairly according to the law.

On April 3 local time, Canada's new Prime Minister Carney announced that the Canadian government will follow the U.S. approach and impose a 25% tariff on all U.S. imported cars not covered by the USMCA (United States-Mexico-Canada Agreement). At the same time, trade and economic tensions between Europe and the United States are escalating rapidly. On April 3rd Eastern Daylight Time, French President Emmanuel Macron publicly called on French companies to suspend investments in the US and urged the EU to adopt a tough stance in response. French government spokesperson Sophie Primas stated that France is pushing the EU to retaliate against US tech companies and is expanding countermeasures to include the service sector. In addition, the WTO issued a statement on US tariff policies, indicating that these policies are expected to have a significant impact on global trade and economic growth prospects. Preliminary analysis suggests that these policies, combined with measures implemented since the beginning of this year, could lead to a decline of about 1% in global merchandise trade volumes this year,****************compared to previous forecasts. Announce countermeasures On April 3 local time, Canada's new Prime Minister Carney announced a series of countermeasures against U.S. tariffs, while calling Trump's protectionist moves a tragedy for global trade. At a press conference held in Ottawa, Carney announced that the Canadian government will follow the U.S. practice of imposing a 25% tariff on all U.S. imported cars that are not included in the USMCA (United States-Mexico-Canada Agreement), but auto parts will not be affected, nor will it impact cars coming from Mexico. "Considering the potential harm of tariffs to the American people, the U.S. government should ultimately change course. But I do not want to give people false hope." He added that it may take a long time for the U.S. to change its attitude. Carney also said that the previously announced tariff measures will remain unchanged. Canada has previously announced that it would impose a 25% retaliatory tariff on US goods worth about 155 billion Canadian dollars (approximately 110 billion US dollars). Carney said, "We were forced to take these measures, and the way we did it was targeted, aiming to have the greatest impact on the U.S. economy while minimizing the impact on Canada." Carney claims that over the past 80 years, the United States has played a significant role in the international economic system, promoting free trade and globalization, and helping to establish an open international economic order. However, all of this has now come to an end, which is a tragedy. Carney stated that Trump's tariff policy is an attempt to reconstruct the international trade system. All of Canada's countermeasures are aimed at protecting its domestic industrial workers. He revealed that due to U.S. tariffs, thousands of workers have already lost their jobs. Automobiles are Canada's second-largest export product, directly employing 125,000 Canadians and providing jobs for nearly 500,000 more in related industries. Although Carney stated that Canada still considers the United States an ally in defense and security, Canada will seek more reliable trading partners to reduce its dependence on the U.S. and protect its economic sovereignty. He spoke with German Chancellor Scholz that morning and claimed to agree to strengthen the diversified trade relationship between the two countries. "When we are facing the crisis caused by Trump's tariffs, reliable trade partners are more important than ever." Schuolz then said: "The EU is the world's largest single market, therefore, we have a complete opportunity to respond in a united and decisive manner, the EU has its own policies and means to deal with trade disputes." Europe's moves At the same time, Europe is also brewing countermeasures. On April 3rd, Eastern Time, French President Macron publicly called on domestic companies to suspend investments in the US and urged the EU to deal with the situation with tough measures until the US-Europe trade policy becomes clearer. A series of signs indicate that trade and economic tensions between Europe and the United States are escalating rapidly. During his meeting with French business representatives, Macron said: "Some companies that originally planned to invest in the United States should pause their projects until the U.S. tariff policy becomes clearer." He pointed out that while the United States is imposing additional tariffs on Europe, European companies continue to invest in the United States, sending a "contradictory signal." He emphasized that European countries should unite to confront the United States' tariff policy, rather than acting unilaterally. Macron stated that he would not rule out retaliatory measures against US tariffs, and France's response to US tariffs would be "larger in scale" than the previous retaliation against US steel and aluminum tariffs. He stated that if Europeans unite in response, they will be able to successfully dismantle US tariff policies. "We are fully prepared to counter US tariffs, and we are not ruling out the use of the EU's anti-coercion instrument against the US. All tools to counter US tariffs are under consideration, such as strengthening regulations on US digital service companies." Earlier on Thursday, Sophie Primas, a spokesperson for the French government, said that France is pushing for the EU to retaliate against US tech companies and is expanding countermeasures to include the services sector. On the same day, German Vice Chancellor and Minister of Economics Robert Habeck said that if Europe could unite, US President Trump would "yield to pressure" and adjust his tariff policy. The outgoing German Chancellor Scholz also said that he believes Trump's latest tariff decision is "fundamentally wrong." He stated that these measures are an attack on the global trade order, and these "ill-considered decisions" will harm the global economy. The U.S. government is on a path that "will only make everyone losers." According to the latest reports, informed sources have revealed that EU regulatory authorities are preparing to impose significant penalties on Musk's social media platform X for violations of the EU's Digital Services Act (DSA). The penalties will include fines and demands for product changes, with the fine amount potentially exceeding $1 billion. WTO Warns On April 3rd local time, the World Trade Organization (WTO) issued a statement regarding the United States' tariff policy. The WTO Secretariat stated that it is closely monitoring and analyzing the tariff policy issued by the United States, and answering questions from WTO members about the potential impact of these policies on their economies and the global trade system. The WTO expects the U.S. tariff policy to have a significant impact on global trade and economic growth prospects. The statement says that, according to the World Trade Organization's preliminary estimates, the tariff measures introduced by the United States since the beginning of this year may lead to a contraction of global merchandise trade volume by about 1% by 2025, which is nearly 4 percentage points lower than previous forecasts. The Director-General of the World Trade Organization, Okonjo-Iweala, said on the 3rd that the United States' imposition of tariffs will have a huge impact on the prospects for global trade and economic growth. Iweala expressed deep concern over the magnitude of trade contraction and the potential for a tariff war triggered by retaliatory measures, emphasizing that the vast majority of global trade still follows the Most Favored Nation treatment terms of the WTO. She called on WTO members to unite and prevent further escalation of trade tensions.