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.

The Trump administration promoted a trade investigation led by the Department of Commerce.Semiconductors and pharmaceuticalsThe plan to impose import tariffs. The measures announced on Monday in the Federal Register are a prelude to the imposition of tariffs and could potentially expand Trump's global trade war. The Ministry of Commerce stated in two notices that it has initiated an investigation"Semiconductor and semiconductor manufacturing equipment" "Medicines and pharmaceutical ingredients, including finished pharmaceutical products"The impact of imports on U.S. national security. These investigations, which began on April 1st, were ordered under Section 232 of the Trade Expansion Act and may last for months. According to the law, the Secretary of Commerce should submit the investigation results within 270 days, but Trump and other officials have indicated that these tasks might be concluded more quickly. Trump has long condemned the national security threat posed by foreign-made pharmaceuticals and chips and has threatened tariffs on imports to revive U.S. manufacturing of these products. But these tariffs also have the potential to seriously disrupt supply chains and raise costs for Americans. From cars to airplanes, from mobile phones to consumer electronics, these products all rely on semiconductors, with global semiconductor sales exceeding $600 billion. Currently, the supply chain is still feeling the chaotic effects caused by the COVID-19 pandemic and may now face new impacts from U.S. tariffs. Trump's frequent shifts in his comprehensive tariff plans have sent mixed signals to the markets, businesses, and trade partners, who are striving to negotiate with the White House to reach dozens of new agreements aimed at reducing trade imbalances. Trump said on Monday that he expects to impose tariffs on imported drugs “sooner rather than later.” Trump said to the reporter:"Listen, I'm a very flexible person. I don't change my mind, but I am very flexible." "I've been helping Tim Cook and the whole business recently," he continued, referring to the CEO of Apple Inc."I don't want to hurt anyone. But the end result is that our country will achieve greatness."However, Trump said last weekend that the exemption on tariffs for technology products (seen as a boon for tech giants like Apple and Nvidia) would be temporary, adding that these imports would eventually face different, industry-specific tariffs. The Ministry of Commerce's investigation into semiconductors has a wide scope, as it aims to assess the import situation of both traditional chips and advanced chips sought after for artificial intelligence applications. According to government notifications, this investigation will cover all semiconductors, equipment used to manufacture semiconductors, and electronic products that contain these components. The imposition of tariffs on the semiconductor industry could affect numerous companies that export billions of dollars worth of microprocessors and related products to the United States each year. These measures could also increase the cost of Trump’s vision for expanding domestic semiconductor production, especially if import duties are levied on chip manufacturing equipment from companies such as ASML Holding NV. Based in the Netherlands, ASML is a leading supplier of advanced lithography machines, which are used to produce the smallest computer chips utilized in artificial intelligence and other sensitive applications. Analysts warn that bringing chip manufacturing to the US will require years of arduous effort. Separate drug investigations will examine imports of all drugs, including generics and generic finished products as well as materials used to make those drugs. Investigators will also look into imports of key pharmaceutical inputs. Tariffs will also hit global pharmaceutical giants like Merck & Co. and Eli Lilly & Co., which have dozens of production bases around the world. Before tariffs may be imposed in the U.S., pharmaceutical companies have announced significant investments in the United States. Recently, Swiss pharmaceutical company Novartis AG announced plans to invest $23 billion in the United States over the next five years, following similar commitments from Eli Lilly, Merck, and Johnson & Johnson. However, experts warn that this is likely not enough to mitigate the impact of tariffs. Leerink Partners analyst David Risinger said in a note to clients ahead of the announcement, "We believe the companies impacted cannot quickly fix the problem. Reregistration would take years and be very costly." In this already the most expensive market in the world, pharmaceutical companies will face two choices: either absorb the costs brought by potential tariffs or raise drug prices. Trump has repeatedly criticized American pharmaceutical companies for their reliance on overseas production, and he is breaking with tradition that has lasted for decades. For many years, the pharmaceutical industry has managed to avoid trade wars and has been protected by international agreements, which largely shield medicines from tariffs on humanitarian grounds.    

According to CCTV News, on April 8th local time, US President Trump announced in a speech that the United States will impose tariffs on pharmaceuticals. Trump stated that the United States does not produce its own medications and other health-improving products. The prices paid for drugs in the U.S. are often many times higher than those in countries that produce pharmaceuticals. Trump believes that once tariffs are imposed on medications, pharmaceutical companies will establish factories in the U.S. because it is the "largest market." European pharmaceutical companies warned at a meeting with the President of the European Commission on the 8th local time that US tariffs will accelerate the trend of the industry moving from Europe to the US. EFPIA, a pharmaceutical industry trade lobbying group whose members include European pharmaceutical giants Bayer, Novartis, and Novo Nordisk, said that it has called on the EU President to push for "rapid and fundamental action" to mitigate the risk of an exodus to the US.

While the Trump administration was wielding the tariff baton, American toy giants were not only diversifying their production bases but also quietly launching a "cost revolution"! The "American Girl" dolls from Mattel's American Girl brand are on display at the American Girl Place in Manhattan, New York. The Trump administration escalated the trade war: imposing a 10% base tariff on almost all countries and adding heavy taxes on dozens of countries including China and Vietnam. As the two pillars of U.S. toy imports, Chinese products face a 54% overall tax rate (with an additional 34%), while Vietnamese toys are hit with a 46% tariff. According to the U.S. Toy Association, 77% of imported toys in the U.S. come from China, with Vietnam following Mexico in third place. Industry experts warn that tax rates far exceeding expectations will lead to a surge in toy prices, with the initial impact likely coinciding with the back-to-school season this fall. "The entire industry is in chaos," said Greg Ahearn, president of the Toy Association. "This will have a huge negative impact on both consumers and the industry." The Dilemma of Enterprises in Supply Chain Earthquakes Toy giants Hasbro and Mattel had predicted in 2025 that the impact of a 20% tariff on China would be included in their plans to shift production to Vietnam, Indonesia, and India. However, the new tariff policy has resulted in rates of 46%, 32%, and 26% for these three countries, respectively. Eric Handler, an analyst at Roth Capital, pointed out: "The transfer of production has lost financial feasibility, and consumers will soon see price increases." "Hey Buddy Hey Pal" company's "Magic Egg Decorator" relies on the Asian supply chain. However, in reality, China announced on Friday that it will impose a 34% retaliatory tariff on the US, exacerbating trade tensions. The capital market "votes with its feet" in advance. The tariff shockwave has swept through Wall Street: Mattel's stock plummeted 16.5% on Thursday, Hasbro dropped 12%, and Funko plunged 18%. Analysts predict that toy giants releasing quarterly reports this month may lower their profit guidance. This tariff storm is reshaping the global toy industry landscape. After Mattel and Hasbro transferred part of their production capacity to Vietnam in two years, production in China has significantly decreased, while new factories in Vietnam hesitate due to tariffs. US toy giant's strategy of diversifying manufacturing locations Mattel has also been diversifying its manufacturing operations away from China, currently sourcing products from seven countries. China accounts for about 40% of its procurement volume, down from the previous 50%. Due to the United States accounting for about half of the global toy sales, China's tariff risks are about 20% of the global cost of goods sold. UBS says this means that according to a 10% China tariff, Mattel's gross margin will be affected by 100 basis points, equivalent to about 12 cents per share. Mattel said that by 2027, the output of any country will not exceed 25% of its total output. Hasbro has been expanding its manufacturing operations to countries like Vietnam and India to reduce its dependence on China. The company's management has indicated that Indonesia may be the next stop. Hasbro, headquartered in Pawtucket, Rhode Island, currently sources products from eight countries, with China accounting for 50%, down from the previous 60%. The company aims to reduce this proportion to 40% by 2026. In comparison, the average for the entire toy industry is 80% to 85% of revenue coming from China. Mexico also imposes tariffs on certain goods, representing 2% of Hasbro's production. The company does not source any products from Canada. Reduce manufacturing costs Despite efforts by companies to reduce costs through renegotiating supplier contracts and simplifying packaging (such as Basic Fun’s release of trayless packages), Basic Fun********: "The 54% tariff could lead to a direct price increase of 50% at the consumer level, especially for toy products with single-digit profit margins. Cost passthrough is inevitable." Behind the hustle and bustle of the New York Toy Fair, buyers are frantically seeking alternatives. An unnamed Guangdong OEM factory manager revealed: "Walmart has asked us to reduce the thickness of plastic parts by 0.2 millimeters, but this can only offset 3% of the cost." Battery-free electronics, minimalist packaging toys, self-assembled daily necessities... These seemingly regressive consumer trends are actually the wisdom of businesses surviving in the global trade war. In the workshop of Abacus Brands, a Los Angeles-based educational toy company, CEO Steve Rad is showcasing a new matte packaging box: replacing the 30-cent plastic liner with a cardboard that costs only 7 cents. "Saving 3-4 cents at each spot can accumulate to offset the $10 increase in retail price," the company also plans to reduce the thickness of the paper used in the instruction manual, and expects to complete the supply chain adjustments this fall. Steve Rad, who designs science kits and other educational toys for older kids, is showcasing a newly improved matte box (left), which will replace its black molded plastic packaging with an improved cardboard material to help offset the cost of future tariffs. The plush toy giant Aurora World has tapped into the color economy. "Reducing the number of paint colors not only cuts material costs but also simplifies the labor process," admitted Gabriel Horikawa, general manager of the toy division. While these changes may not fully offset the impact of tariffs, they serve as a necessary buffer. Aurora was founded in Korea in the 1980s, and by going green, it has saved more than 3 million pounds of recycled plastic. Packaging Slimming: A Win-Win for Environmental Protection and Cost The classic toy brand Basic Fun has designed three packaging options for Tonka trucks: a traditional box with a display window, a tray without a box, and a minimalist paper price tag. The latter two options can save costs of $1.25 and $1.75 respectively, but CEO Jay Foreman admits, "This will reduce the product's appeal and is far from offsetting the tariffs on goods from China." The Art of Survival in the Fog of Policy Michael Matthias, CFO of American Eagle Outfitters, revealed that the company plans to reduce the production capacity ratio in China and Vietnam from 15%-20% each to single digits. CEO Jay Schottenstein admitted, "We faced similar challenges eight years ago, and we must remain flexible— you never know where the next round of tariffs will be aimed." Facing policy uncertainty, Peter Baum of Baum Essex in New York lamented, "This is the beginning of a global depression. An 80-year-old business run by five generations could be ruined." The company, which relocated its production capacity from China in 2019, is now facing another****in several Southeast Asian countries. In this trade war without gunpowder, enterprises are adopting meticulous "subtraction strategies" to find a niche in the tariff storm. When innovation becomes a forced choice, the evolution of consumption patterns may reshape the commercial landscape in the post-tariff era.

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.

The European Union plans to approve tariffs on US imports worth up to $28 billion this Wednesday, as a first countermeasure against US tariffs. The EU's first round of countermeasure tariffs will take effect in two stages, with some taking effect on April 15th and the rest taking effect a month later. As President Trump's tariff storm shakes global markets and economic prospects, EU countries will seek to form a united front in the coming days to determine the first round of countermeasures against U.S. tariffs. According to media reports, the European Union may approve the imposition of tariffs on US imports worth up to $28 billion this Wednesday, which will be the EU's first round of targeted retaliatory tariffs against the United States. This move will mean that the EU joins the ranks of China and Canada in fighting back against the United States. ▌The EU will counterattack the US The European Union's 27 countries are already facing a 25% import tariff on cars, steel, and aluminum products from the United States. Starting from this Wednesday, almost all other goods from the EU will also face a so-called "reciprocal tariff" of 20%. Currently, Trump's tariffs already cover about 70% of the EU's exports to the United States—totaling 532 billion euros (approximately 425.6053 billion yuan) according to last year's data. In the future, the EU's copper, pharmaceuticals, semiconductors, and timber may also be subject to tariffs. The European Commission, responsible for coordinating EU trade policy, will present a proposed list of U.S. products subject to increased tariffs to EU member states later on Monday local time. The list will include American meat, grains, wine, timber, and clothing, as well as items such as chewing gum, dental floss, vacuum cleaners, and toilet paper, with a total value of approximately $28 billion. It should be noted that this list is primarily aimed at responding to Trump's steel and aluminum tariffs, rather than addressing broader reciprocal tariffs. Bourbon has received more attention, revealing divisions within the EU. The European Commission has decided to impose a 50% tariff on American bourbon, prompting Trump to threaten retaliatory tariffs of up to 200% on EU alcohol beverages if the EU continues its actions. Major wine-exporting countries in Europe, France and Italy, have expressed concerns about this. Early Monday local time, Luxembourg will host a political meeting of the European Union—the first EU-wide political gathering since Trump announced comprehensive tariffs. Trade ministers from the EU's 27 member states will exchange views on the impact of the tariffs and how best to respond. EU diplomats said that the main purpose of this meeting was to convey a consistent message that the EU hoped to negotiate with Washington, D.C. of the United States on the removal of tariffs, but was ready to take countermeasures if the negotiations failed. ▌Divisions persist within the EU. Currently, among EU member states, there are differing opinions on how to respond to US tariffs. France has stated that the European Union should devise a comprehensive plan that goes far beyond tariffs for retaliation. French President Emmanuel Macron has suggested that European companies should suspend their investments in the United States until "the situation becomes clear". Ireland, which exports almost a third of its produce to the US, has appealed for a "thoughtful and measured" response, while Italy, the third largest EU exporter to the US, has questioned whether the EU should retaliate at all. "It's a difficult balance. Measures can't be too soft, or they won't bring the United States to the negotiating table, but they can't be too hard either, or they might lead to an escalation," said an EU diplomat. ▌The first round of EU countermeasures will be approved this week. So far, the negotiations between the EU and the US have not yielded any results. EU Trade Commissioner Maros Sefcovic said that he had a two-hour "frank" exchange with the US Trade Representative last Friday, and told them that the US tariffs were "destructive and unreasonable." The European Union's first round of counter-tariffs is scheduled for a vote this Wednesday and is expected to be approved with a high probability—unless 15 EU member states representing 65% of the EU's population vote against it, which is highly unlikely to happen. The European Union's first round of retaliatory tariffs will come into effect in two stages, with some taking effect on April 15, and the rest a month later. European Commission President Ursula von der Leyen will also hold discussions with the top executives of the steel, automotive, and pharmaceutical industries on Monday and Tuesday this week to assess the impact of tariffs and decide on the next steps to take.  

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 the afternoon of April 2, local time, President Trump of the United States signed two executive orders on the so-called "reciprocal tariffs" at the White House, announcing the establishment of a "minimum benchmark tariff" of 10% for all trade partners, and at the same time, higher tariffs are imposed on dozens of other countries and regions, including China, on the basis of 10%. Among them, the "reciprocal tariff" rate imposed by the United States on China is 34% - the overlapping rate will rise to 54%. The toy industry is facing yet another major challenge. According to reports from the White House website and U.S. media such as The New York Times, this is the largest-scale new tariff policy announced by Trump since taking office in January this year, wielding the tariff stick against the world, including allies, under the guise of "preventing other countries from exploiting the United States." According to the new policy announced by Trump, China's "reciprocal tariff" rate will be 34%, Vietnam's tariff will be as high as 46%, Thailand's tariff will be 36%, Indonesia's tariff will be 32%, India's tariff will be 26%, Japan's tariff will be 24%, South Korea's tariff will be 25%, and the EU countries' tariffs will rise to 20%. According to U.S. media reports, 34% of the reciprocal tariffs on China will be added to the original 20% U.S. tariffs on China, resulting in a total tariff rate of 54% on imports from China. This rate is expected to take effect on April 9. Additionally, the White House announced that starting from May 2, it will terminate the duty-free treatment for small packages (valued at $800 or less) imported from mainland China and Hong Kong, effectively removing the de minimis threshold. Trump's advisers insist that tariffs will bring vital strategic manufacturing capabilities back to the US. However, economists warn that tariffs could slow the global economy, increase the risk of recession, and add thousands of dollars to the cost of living for ordinary American families. If the new tariff policy is implemented, it will be another major challenge for the toy industry. Previously, Hasbro CEO Chris Cocks said in an interview with the media that a 10% tariff could be negotiated and absorbed internally, but a 20% tariff would be unbearable and would definitely be passed on to consumers. It is expected that the toy industry may see a wave of price increases in a few months. Overseas media also believe that the impact of the tariff increase on toy prices will start to become apparent this fall. Recently, a total of 19 toy industry associations from North America, Europe, Asia, and South America signed a joint statement calling for the exclusion of toys from tariff policy formulation and negotiations by the United States and its trading partners. The Vietnamese stock market plummeted threatened with a 46% increase in tariffs. To reduce dependence on Chinese manufacturing, several major toy manufacturers have already adjusted their supply chains in recent years, relocating some production capacity to Southeast Asian countries such as Vietnam and Malaysia. Trump's announcement of the so-called "reciprocal tariff" executive order imposes a tariff rate as high as 46% on Vietnam, significantly higher than that on other countries. After the market opened on Thursday, the Vietnamese stock market fell across the board. Economist and former vice president of the Vietnam Institute for Economic Management, Vo Tri Thanh, stated that tariffs are a shock to the global economy and to Vietnam, and that Vietnam will experience significant negative impacts. The United States has consistently been Vietnam's largest export market. In 2024, Vietnam's exports to the U.S. reached $142 billion, accounting for 30% of Vietnam's GDP. However, for Trump, Vietnam's trade surplus with the U.S. exceeding $123 billion in 2024 represents "a tremendous trade unfairness." Sports brand Nike has about half of its shoe products and 28% of its clothing produced in Vietnam, while its competitor Adidas relies on Vietnamese factories for 39% of its shoes and 18% of its clothing. According to calculations, the average tariff rate for Vietnamese shoe products in the United States was previously 13.6%, and the clothing product rate was 18.8%. According to the latest tax rate announced by Trump, Nike and Adidas's products from Vietnamese factories will need to pay more than three times the tariff when entering the United States. At the same time, some toy manufacturers also rely on Vietnam. Several American companies, such as Hasbro and Mattel, collaborate with the Southeast Asian toy manufacturer GFT to import and sell toys produced by the company. GFT has five production factories in northern Vietnam and employs over 15,000 workers.

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.

The measure of U.S. President Trump imposing a 25% tariff on imported cars officially took effect after midnight on Thursday in Washington time, which is expected to significantly increase the cost of the automotive industry and disrupt the supply chain. According to Trump's announcement of the plan last week, some auto parts will also be subject to tariffs at the same rate no later than May 3. These tariffs could lead to new car prices rising by thousands of dollars and have an impact on auto sales. On Wednesday, Trump also announced that the United States would impose a starting 10% reciprocal tariff on all imported goods, with more than 60 countries and regions with the largest trade deficits facing even higher rates. Although the reciprocal tariffs do not apply to imported automobiles and auto parts, automakers have already been impacted by the escalating trade war. "Although the auto industry may have dodged a bullet, we remain concerned that auto and parts tariffs will be here to stay for the long term and will bring a significant cost burden," Bernstein analyst Daniel Roeska said in a note to clients. Officials said that the United States will maintain a 25% tariff on Canada and Mexico related to drug trafficking and illegal immigration, but at the same time, the two countries are not within the scope of the United States' retaliatory tariffs. Goods covered by the United States-Mexico-Canada Agreement, which Trump promoted during his first presidential term, will continue to be exempt from tariffs. Auto industry executives have been lobbying the Trump administration for weeks in an effort to mitigate the impact of the trade war.Ford Motor Company(10.15, 0.21, 2.11%)、General Motors(47.98, 0.72, 1.52%)Stellantis NV, the parent company of Chrysler, recently called for the exclusion of some low-cost auto parts from tariffs.  

Event Summary On April 2, 2025, U.S. President Trump officially signed the "Reciprocal Tariff" executive order, implementing differentiated tax rates for major global trading partners: China (34%), the European Union (20%), Japan (24%), South Korea (25%), India (26%), Vietnam (46%), Thailand (36%), etc., and imposed an additional 25% tariff on all imported automobiles and parts. This policy, under the guise of "fair trade," actually targets China, the European Union, and Asian manufacturing countries through tax rate disparities, causing a strong backlash from the international community. Canada, Mexico, the European Union, and other countries have already initiated plans for retaliatory tariffs, plunging the global supply chain into short-term chaos. The long-term impact depends on the strength of multilateral countermeasures and the speed of industrial chain restructuring. Policy Background The implementation of Trump's tariff policy is rooted in the long-standing structural contradictions in the United States and profound changes in the domestic political ecology. Economically, the hollowing out of American manufacturing and the ongoing trade deficit issues have continued to ferment; politically, social polarization in the United States has intensified, and the dissatisfaction of voters in traditional manufacturing states with the economic situation has been amplified by populist sentiments. The Trump administration continued the "America First" protectionist logic by using tariffs as a tool for multiple games. Its core objectives include: protecting traditional industries such as steel and aluminum by increasing import costs, thereby promoting the return of manufacturing; using tariff revenues to alleviate fiscal deficits and subsidize domestic tax cuts; simultaneously, creating trade frictions to gain support from voters in the Midwest, paving the way for the 2026 midterm elections and re-election. The legal basis for the policy comes from the International Emergency Economic Powers Act and Section 232 of the Trade Expansion Act. However, the international community widely criticizes the abuse of the "national security" argument to bypass WTO rules and implement unilateral sanctions. It is worth noting that Trump's so-called concept of "reciprocity" fundamentally conflicts with the principle of overall balance of rights and obligations in the WTO, as it only measures trade deficits in goods while ignoring the deep impact of trade surpluses in services and the international status of the US dollar on trade structure. Impact on China: Challenges and Opportunities Coexist The Trump administration imposed a cumulative tariff of 20% on Chinese goods imported into the U.S. If Congress were to revoke China's "Permanent Normal Trade Relations" (PNTR) status, the total tariff could skyrocket to 68%, significantly impacting industries such as food and beverages, electronics, and textiles. It is estimated that this would lead to a decrease in exports to the U.S. by 6-9 percentage points. However, China's automobile export dependence on the US is only about 0.5%, and new energy vehicles achieve a doubling of export volume in 2024 through the "Belt and Road" initiative (such as Russia, the Middle East), partially offsetting the impact of a 100% electric vehicle tariff. However, automobile parts exports face a severe test, with exports to the US reaching 10.1 billion US dollars in 2024, and 30% of US car companies' components rely on China, forcing the supply chain to accelerate "de-Chinaization" under tariffs. Challenges also bring opportunities: The EU, Japan, and South Korea are turning to China for cooperation due to U.S. tariffs, accelerating regional economic integration under the RCEP framework; the process of domestic substitution in fields such as semiconductors and chips has significantly accelerated; China is showcasing greater economic resilience by expanding domestic demand and promoting upgrades in high-end manufacturing. Global Impact: Supply Chain Restructuring and Inflation Spiral The United States has imposed a 25% tariff on automobiles and auto parts, directly impacting Mexico (which relies on the United States for 3 million vehicle exports) and Japan and South Korea (where auto exports to the United States account for more than 25% of their vehicle production). To avoid rising costs, automakers may turn to China for purchasing auto parts, accelerating the "de-Americanization" of the global supply chain. However, American automakers also face difficulties: 30% of their auto parts depend on China, causing an increase in the cost per car of $3,500 to $12,000, weakening their global competitiveness. Trade confrontation is becoming cyclical: The EU plans to impose tariffs on American technology products, while China counters by restricting imports of soybeans, corn, and liquefied natural gas from the U.S., and limiting exports of rare earths. The global trade tensions are escalating, and the WTO's dispute resolution mechanism is paralyzed due to U.S. obstruction of judge appointments, further eroding the authority of the multilateral system. Economies like Mexico and South Korea, which are heavily reliant on the U.S. market, face the risk of recession. Conclusion: The Costs of Protectionism and Future Pathways Trump's tariff policy is a mixture of economic nationalism and geopolitical****, with its short-term effect of stimulating the return of manufacturing potentially being outweighed by long-term costs: consumers bear inflationary pressures, corporate investment intentions decline, and the credibility of the US dollar is damaged. For China, the pressure on exports forces technological innovation and market diversification, but it is necessary to be wary of the loss of industrial chain position in the process of supply chain reconfiguration. The international community's countermeasures and joint boycotts have shown results: China, together with over 160 countries, filed a complaint in the WTO, the European Union launched the "anti-coercion tool", and more than 130 countries worldwide signed the "Joint Statement" opposing unilateralism. Historical experience has shown that there are no winners in trade wars, only by returning to multilateral consultations and rebuilding an inclusive global economic governance system can we avoid the vicious cycle of "beggar-my-neighbor". In the future, the uncertainty of US policy shifts and the response capabilities of various countries will become key variables in reshaping the global trade order.

On April 3, reports indicated that Vietnam's Ministry of Finance recently proposed cutting import tariffs on a range of products including cars, liquefied natural gas (LNG), wood, and agricultural goods. The tariff on certain types of cars would be reduced from a rate ranging between 45% and 64% down to 32%. This move aims to avoid potential additional tariffs that the U.S. might impose on Vietnam. Reports indicate that Vietnamese authorities stated that the decree revising the most-favored-nation tariff adjustment is expected to be released within 3 months. The statement indicated that the revised decree was "to address the complex and unpredictable developments in the global geopolitical and economic landscape," as tariff policies "significantly" impact the economies of countries worldwide, including Vietnam. In 2024, Vietnam's trade surplus with the United States expanded to $123.5 billion, making it the third highest country with a trade surplus against the U.S., following China and Mexico. In response, the equivalent tariffs imposed by the United States on Vietnam reach as high as 46%, making it the fourth highest among countries and regions on the tariff list, only behind Cambodia, Laos, and Madagascar. Additionally, apart from the United States, Vietnam has previously announced a series of import tariff adjustments targeting other automobile-exporting countries. According to the latest policy, starting in 2025, Vietnam will reduce import tariffs on luxury cars from regions such as Europe and Japan.  

Local timeOn April 2, U.S. President Donald Trump signed two executive orders on so-called "reciprocal tariffs" at the White House, announcing that the United States will establish a 10% "minimum benchmark tariff" on trade partners and impose higher tariffs on certain trade partners. It is worth noting that Trump launched a series of actions against China during his first term.The "trade war" has resulted in an average tariff increase on China of about 20%. At the beginning of his second term, in March, an additional 20% tariff was imposed, and considering the 34% increase added early this morning, the current average tariff level imposed by the United States on China is over 75%. This marks a formal shift in U.S. trade policy towards China from competition to comprehensive containment. This policy, through a cumulative mechanism, enhances the suppression effect, but it will also face backlash risks such as the cost of supply chain restructuring and rising inflation. China will counter the tariff impact through industrial chain upgrades and multilateral cooperation, and the global trade pattern is inevitably entering a period of deep adjustment. We observe the export structure of American energy and chemical products to China and find that the most exported energy and chemical products from the US to China include: propane andPolyethylene。 U.S. propane prices (withThe MB price (based on which) has been consistently lower than the Middle East's CP price in the long term, coupled with the increase in production brought about by the shale gas revolution, making it significantly more price competitive. Furthermore, the expansion of U.S. propane export terminals has further supported the quantity of its exports to China. Despite the fact that during the Sino-U.S. trade friction in 2018, China imposed a 26% retaliatory tariff on U.S. propane, resulting in a sharp decrease in import share from 25% in 2017. However, after the tariff exemption in 2020, U.S. propane exports to China quickly rebounded. In 2024, U.S. propane exports reached a record high of 1.8 million barrels per day, the highest level since data collection began in 1973, mainly due to new P projects in China.DHThe demand for propane from the equipment has significantly increased. In 2024, China imported propane.2%From the United States, followed by Iran (17%), Qatar (7%), and the UAE (3%). Additionally, another major category of chemical products that China imports from the United States in significant quantities is polyethylene (see the figure below).In 2024, China's import of polyethylene is approximately 13.85 million tons, of which about 2.4 million tons are imported from the United States, accounting for more than 10% of imports from the US.7%In comparison, the proportion of polyethylene imported from Saudi Arabia is16.9%。 The United States possesses abundant and low-cost ethane resources, giving it a strong competitive advantage in terms of production costs. Building on this, the U.S. has been continuously expanding its polyethylene production capacity, particularly—From 2022 to 2023, the United States has seen the commissioning of multiple new production capacities. According to statistics from consulting agencies, in 2024, the total polyethylene (PE) capacity in the United States region reached 28.171 million tons, significantly increasing the local polyethylene supply. To absorb this supply increase, the United States actively increased its polyethylene export volume. According to statistics from 2024, the net export volume of polyethylene in the North American region will approach 1.200Ten thousand tons, making the United States the world's largest exporter of polyethylene. Category-wise, the most imported polyethylene category from the United States is standard products.LLDPE accounts for 21% of the imported LLDPE; followed by HDPE, with imports from the United States accounting for more than.17%For the above content, translate it from Chinese to English and output the translation result directly without any explanation.For HDPE products, the resources in the United States are known for being of medium quality and low price. Therefore, if countermeasures are initiated against relevant varieties, the impact on the market will be relatively significant. After the announcement of the additional tariff, domesticallyPEThe futures market remained calm, as of the time of this report.PE2509Contract Report7648The translation of the Chinese phrase "****" into English is "increase" or "rise".0.21%；PP2509 contract reported 7332Increase in price0.05%。 From the perspective of market trends, the impact of high tariffs on the demand side is limited; capital is expecting possible domestic countermeasures, and in combination with the migration and rollover of the main contracts, the far-month contracts.09The contract's price performance remains relatively strong. Author: Gao Xing, Senior Market Analysis Expert

The United States recently announced a 25% tariff on all imported automobiles, effective from April 3, covering imported passenger vehicles (such as sedans and SUVs) and light trucks, as well as key automotive components (including engines and transmissions). The measure may also be extended to other parts if necessary.In response, Toyota Motor and Hyundai Motor, among other automakers, have commented. Toyota Motor stated that it will continue to maintain its existing operational model, strive to reduce fixed costs, and temporarily will not increase the prices of vehicles sold in the U.S. market.Honda Motor plans to ship as many vehicles to the U.S. as possible before the tariffs take effect. It says it's now trying to figure out what price increases consumers will accept for its various models, and is still planning to review its production base and export markets.Hyundai has issued a warning to its U.S. dealers and stated that it is evaluating its pricing strategy in response to the upcoming 25% tariff on imported cars and parts in the United States. Randy Parker, the CEO of Hyundai and Genesis North America, mentioned in a notification to dealers that it cannot guarantee the current vehicle prices, and wholesale prices for vehicles after April 2 may be subject to adjustment.

Recently, the U.S. government unilaterally announced further tariff increases on goods exported from China to the U.S. American toy brand owners, retailers, and Chinese toy manufacturers have all reported to our association that the U.S. government's unilateral tariff increases will severely harm the interests of people in both countries. In this regard, our association calls on the U.S. government to consider maintaining Sino-U.S. economic and trade cooperation, protecting consumers, and safeguarding the interests of Chinese and American enterprises, and to continue implementing the WTO agreement’s zero-tariff commitment on toys.Toys are essential for children's happy growth, providing global children with opportunities for play, learning, healthy development, and a joyful childhood. Since joining the WTO, China has implemented a zero-tariff policy on toys with major trading countries. I will join the American Toy Association and other key members of the International Council of Toy Industries in urging the U.S. government to continue adhering to the WTO agreement's zero-tariff provisions for toys.The US government's unilateral imposition of tariffs has triggered a series of new issues and fluctuations in international trade, with both Chinese and American companies being victims. We call on all American brand owners and retailers to work with Chinese suppliers to resolve issues of mutual concern through friendly consultations and in a spirit of equality and mutual benefit, jointly address the current difficulties, and avoid unilaterally using market advantages to disrupt the stability of the supply chain.The toy associations of 21 countries and regions around the world jointly signed the "Initiative to Maintain Zero Tariffs on Toys."

President Trump is putting the brakes on the profit engine for global automakers. On Wednesday, Trump announced that the U.S. would impose a 25% tariff on imported cars and parts, a move set to take effect April 3 and apply to finished vehicles including cars and trucks. Speaking at the White House about the new tariff, Trump said, "This continues the unprecedented economic growth." However, judging by the reaction in U.S. stocks on Thursday and analyst interpretations, investors and Wall Street don't seem to agree.Numerous analysts quickly warned that the latest move could have a significant impact on the automotive industry. Daniel Roeska, an analyst at Bernstein, noted that this action "would cause profound disruption to the global automotive industry model," estimating that each vehicle would face a comprehensive tariff impact of approximately $6,700. Ronald Jewsikow, an analyst at Guggenheim, projected that the per-vehicle cost would increase by $6,000 to $7,000, emphasizing that "the actual price increase passed on to consumers could be even higher to offset the tariff impact."Goldman Sachs analyst Mark Delaney believes that a 25% tariff on imported cars could lead to price increases of $5,000 to $15,000 per vehicle. He also noted that due to tariffs on auto parts, the production costs of domestically manufactured cars could rise by up to $8,000, driving up their selling prices as well. Bank of America predicts that the price of each car will increase by at least $4,500.Analysts point out that different car manufacturers are affected to varying degrees. Bernstein's Ross Ka and Barclays' Dan Levy both believe that due to the advantages of localized production, Elon Musk's Tesla is least impacted by potential tariff shocks. Notably, Musk, who was the largest campaign donor to Trump, is currently serving in a key position in the Trump administration as the head of the "Government Efficiency Office," a government agency streamlining plan. As Tesla's stock price has fallen by double digits this year, Trump and his cabinet members have repeatedly publicly praised the company.Interpretation of Tariff DetailsThe new regulations will take effect at midnight on April 3, adding a 25% punitive tariff on top of the existing 2.5% tariff. It is particularly noteworthy that even Canada, Mexico, and South Korea, which have free trade agreements with the United States, will not be spared. Traditional automobile powerhouses such as Japan and Germany will face direct impact as well.Although engine, transmission, and other core components are also subject to a 25% tariff, the implementation will be delayed until May 3rd. This "step-by-step" strategy reveals the intention of the Trump administration to预留缓冲期 for supply chain adjustments. It appears there might be a repetition or an incomplete sentence at the end. The intended complete translation should be:"Although engine, transmission, and other core components are also subject to a 25% tariff, the implementation will be delayed until May 3rd. This 'step-by-step' strategy reveals the intention of the Trump administration to预留缓冲期 for supply chain adjustments."If "预留缓冲期" refers to "reserve a buffer period," the full translation would be:"Although engine, transmission, and other core components are also subject to a 25% tariff, the implementation will be delayed until May 3rd. This 'step-by-step' strategy reveals the intention of the Trump administration to reserve a buffer period for supply chain adjustments."On the surface, vehicles that comply with the USMCA rules of origin can be exempted, but in reality, only the "U.S. content value" portion is exempt. For example, if a truck assembled in Mexico contains 45% U.S. components, the remaining 55% of the value is still subject to full tariffs — this "partial exemption" design essentially forces automakers to shift their production capacity.How will the new tariffs impact the automotive industries of Mexico, Japan, Canada, and other countries?On March 27, local time, in response to US President Donald Trump's announcement of a 25% tariff on imported cars,MexicoThe American Automobile Industry Association (AMIA), the Mexican National Auto Parts Industry Association (INA), and the Mexican Automobile Dealers Association (AMDA) jointly issued a statement saying that the U.S. imposition of tariffs seriously harms the North American auto industry and impacts consumers in the United States as well as investment and employment in the U.S., Canada, and Mexico. The statement noted that the competitiveness of the North American auto industry has benefited from thirty years of regional integration, and the imposition of tariffs poses a threat to the automotive sector. During this special period of global uncertainty, North America should strengthen rather than weaken its integration. The statement indicated that the industry associations will maintain close communication with their American and Canadian counterparts to jointly work on preserving the industry's competitiveness and integration in the region.The new tariffs inevitably impact the automotive industry, which accounts for nearly 30% of Japan's total exports to the United States. Along with the decrease in automobile exports,JapanDomestic production will also decline, potentially impacting the economic value by up to 13 trillion yen. Although it is difficult to make a direct comparison, this is equivalent to 1.6 times the foreign tourist consumption in Japan in 2024, accounting for more than 2% of Japan's nominal GDP. According to the calculations, if Japan's automobile exports to the United States and production decrease by 10%, it will result in an impact of 1.3 trillion yen.Canadian Prime Minister Mark Carney also said on Wednesday that U.S. President Trump's imposition of a 25% "unreasonable" tariff on imported cars would harm the Canadian economy. He said that these tariffs were a "direct hit" on Canadian workers and businesses, and that Trump had "betrayed" the North American trade agreement renegotiated during his first presidential term, the United States-Mexico-Canada Agreement (USMCA). It was reported that Mark Carney would meet with ministers of the U.S.-Canada Cabinet Committee on Thursday to discuss trade options, including imposing retaliatory tariffs on U.S. products.Canadian Prime Minister Mark Carney

Recently, a survey initiated by the Biotechnology Innovation Organization (BIO) shows that the tariffs threatened by the Trump administration against Europe could have a significant impact on the biotechnology industry.According to survey data,94% of the surveyed companies stated that imposing tariffs on EU products would lead to an increase in manufacturing costs.At the same time, imposing tariffs on imported products from Canada will increase costs for 82% of companies, while tariffs on imported products from China will lead to a cost increase for 70% of companies.The survey was conducted by BIO last month and involved 42 companies, nearly half of which are large enterprises with annual revenues exceeding $1 billion.More critically, 50% of the surveyed companies indicated that if EU tariffs are implemented, they would need to find new RD and production partners, and about half of the companies might be forced to delay or modify their overseas regulatory submissions.The survey further pointed out that the supply chain adjustment cycle is lengthy: 44% of enterprises expect it will take more than two years to restructure their supply chains, 36% believe it will take 1 to 2 years, and only 21% think it can be completed within 12 months. BIO CEO John Crowley warned that tariffs could "harm drug accessibility, hinder innovation, and increase unnecessary regulatory burdens." Although he supports the return of manufacturing to the U.S., he stated that the short-term impact of tariffs will cause "profound damage" to the industry.In the face of tariff threats, some American pharmaceutical companies have accelerated their domestic布局.At the end of March, Eli Lilly announced an investment of $27 billion to build four "super factories" in the United States, while Johnson Johnson plans to invest $55 billion in the U.S. over the next four years to expand pharmaceutical and medical device facilities.However, the industry generally believes that new production capacity requires 5 to 10 years to materialize, and the cost of a single factory can reach up to 2 billion US dollars, which may squeeze research and development investment.The Trump administration plans to announce a series of new tariff measures on April 2.Although Bloomberg reported that this announcement is not expected to include specific product tariffs opposed by the pharmaceutical and biotechnology industries, such tariffs are likely still in the works.Trump stated on Monday, "Tariffs on pharmaceutical products will be implemented at some point." Last month, he even explicitly warned pharmaceutical executives during a meeting at the White House to bring production back to the United States.The BIO survey results indicate that these tariff policies may, to some extent, promote the Trump administration's goal of bringing manufacturing back to the United States, but they may also run counter to the government's aim of reducing drug costs.

The Canadian government has released the "Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) Status Report." This report was published following public consultations on the "Draft PFAS Status Report" released in May 2023 and the "Updated Draft PFAS Status Report" to be released in July 2024, during which over 400 stakeholders provided feedback.According to the latest scientific research, the Canadian government has studied PFAS as a class of substances. The PFAS category includes substances that meet the broad chemical definition set by the Organization for Economic Co-operation and Development (OECD).Scientific evidence indicates that concerns about well-studied PFAS for human health and the environment are more broadly applicable to other PFAS. The category approach helps prevent unregulated PFAS that may have similar hazardous characteristics from replacing a regulated PFAS.Based on the latest science and evidence, this report concludes that PFAS substances (excluding fluoropolymers as defined in the report) are toxic under the Canadian Environmental Protection Act (CEPA) of 1999.CEPA Section 64 Investigation Results on PFAS (Excluding Fluorinated Polymers)This report concludes that PFAS (excluding fluorinated polymers) meets two criteria under Section 64 of CEPA.They are currently or may enter the environment, and their quantity, concentration, or conditions may have direct or long-term harmful effects on the environment or its biodiversity.In Canada, they are entering the environment in quantities or concentrations or conditions that pose or may pose a danger to human life or health.The conclusion of the report provides a science-based foundation for future actions and consultations with the industry and other stakeholders.The PFAS status report defines fluorinated polymers as a group of PFAS. However, they are currently excluded from the report because current evidence suggests that they may have different exposure and hazard characteristics compared to other PFAS. The government will conduct further research on these substances to ensure informed decision-making.In light of the conclusions of the PFAS status report, the Canadian government proposes to add the PFAS category (excluding fluorinated polymers) to Part 2 of Schedule 1 of CEPA. This action will achieve a targeted and phased risk management approach while protecting public health and the environment.Proposed Actions on PFAS - Risk Management ApproachesThe Canadian government recognizes that PFAS have various uses and are widely used in economic sectors. For safety, health, or economic reasons, certain uses may be critical, and industries will have the opportunity to participate and identify practical alternatives. This approach not only protects health and the environment but also supports the competitiveness of Canadian industries as they seek safer substitutes.In order to determine the actions regarding the PFAS category (excluding fluorinated polymers), the government has released a proposed risk management approach, which includes the following environmental and health risk management objectives:Reduce PFAS emissions into the Canadian environment to avoid adverse effects while balancing environmental protection and economic feasibility.Reduce human exposure to PFAS, including disproportionately affected populations.In order to achieve these goals and reduce environmental and human exposure to the technically feasible minimum level, the government recommends a phased approach to prioritize actions.Phase 1: Address PFAS in firefighting foam (currently unregulated), as PFAS poses a high potential for environmental and human exposure.Phase 2: Address the issue of the use of PFAS in consumer products where alternatives exist, such as certain textiles, ski wax, building materials, and food packaging materials.Phase 3: Evaluation needs to consider further assessment of industries through stakeholder engagement and further evaluation.The risk management methods will be open for consultation to all stakeholders from March 8, 2025, to May 7, 2025.Take action on PFASIn order to protect the health of Canadians and ecosystems, the government has been taking action on PFAS. Following scientific assessments in 2006 and 2012, three subgroups of PFAS (perfluorooctane sulfonate [PFOS], perfluorooctanoic acid [PFOA], and long-chain perfluoroalkyl carboxylic acids [LC-PFCA], their salts, and their precursors) were addressed through the 2012 Regulations on the Prohibition of Certain Toxic Substances. To further address these three PFAS subgroups, the government plans to release updates to these regulations in 2025.Starting in 2025, 163 types of PFAS will be added to the National Pollutant Discharge Elimination System (NPDES) in order to enhance the understanding of their use and impact. This will provide information on how PFAS are manufactured, processed, or used in quantities exceeding 1 kg. The collected information will improve the understanding of PFAS and complement the proposed risk management approach focused on finished products.In order to reduce exposure to PFAS, Health Canada released the final objectives for PFAS in drinking water in August 2024. According to the Great Lakes Water Quality Agreement, parties are also taking action to reduce the discharge of these substances into the Great Lakes.In June 2024, the Canadian Food Inspection Agency issued a temporary standard to limit the amount of PFAS in biosolids sold or imported as fertilizer. The concentration of perfluorooctane sulfonate (PFOS), a type of PFAS, in all domestic and imported biosolids used as commercial fertilizers must be below 50 parts per billion.The government will continue to take further action to reduce the risks posed by known federal contaminated sites of PFAS to the environment and human health. This work may include providing alternative drinking water sources and cleaning up specific areas, among other actions.Canada works with the provinces through the Canadian Council of the Environment to address contaminated sites. It also collaborates with provinces, territories, and neighboring landowners to provide updated information and develop plans when pollution has already been or may have been transferred to the site.Residents and municipal authorities not related to federal activities regarding PFAS pollution should contact the provincial or regional ministry responsible for environmental and drinking water issues.Due to the importance of information in understanding the sources of PFAS, the government is currently compiling responses received from the information collection notice published in 2024, which includes 312 types of PFAS. This notice targets anyone who imports, manufactures, or uses products made with these PFAS in order to establish baseline commercial data and provide information for future activities. Similar initiatives have been issued since 2000 to investigate other PFAS substances.According to the new substance notification regulations of CEPA (Chemicals and Polymers), continue to assess the potential risks of introducing new PFAS to the Canadian market. These PFAS will be subject to possible actions that address PFAS as a category.The government continues to conduct research and monitoring activities based on existing science. This includes biomonitoring of certain PFAS based on the Canadian Health Measures Survey, as well as comprehensive monitoring and research projects on certain PFAS as part of the Northern Pollutants Program under Envi.In addition, Canada collaborates with other countries to address PFAS, including through the Stockholm Convention on Persistent Organic Pollutants. In 2021, Canada nominated the addition of long-chain perfluoroalkyl carboxylic acids (LC-PFCA) and their salts and related compounds to the convention, which will contribute to global efforts to eliminate these substances. Internationally, Canada is one of the first countries to propose managing PFAS as a category.

InternationalNews Highlights:Raw Material News-EvonikIPDIProduction encountered force majeure.！Automotive News-The new U.S. auto tariff policy harms multiple interests and may lead to large-scale layoffs in American car companies.Packaging News-New progress! Berry International has expanded. B Loop Packaging SeriesMacroeconomic NewsBrazilian President Lula: Will impose retaliatory tariffs on American goods. The following is the details of international news:1.President Trump of the United States26The President signed an executive order at the White House imposing tariffs on imported cars to the United States.25%Tariffs and related measures will be implemented.4Month2The new tariff policy, effective from the day announced, is expected to drive up car prices in the U.S., harming consumer interests and delivering a "major blow" to the American automotive industry, according to industry insiders. Trade associations and the American Automobile Association have stated that the new tariff policy will once again increase the costs of producing and selling cars in the U.S., leading to higher prices, fewer choices for consumers, and a reduction in employment opportunities in American manufacturing. Gary Hufbauer, a senior researcher at the Peterson Institute for International Economics and a former Treasury official, also indicated that the latest announced tariffs represent a "significant blow" to the automotive sector. He noted that, especially given the weak financial situation of consumers, the increase in automobile costs will reduce demand. Hufbauer predicted that there would be "large-scale layoffs" in U.S. automotive and parts companies.2.EvonikIPDIProduction of the product encounters force majeure.Recently, Evonik announced that it will...VESTANAT® IPDlDue to the impact of force majeure factors, we will immediately cease supply.VESTANAT® IPDlProduct. The notification mentioned that due to unforeseen and unavoidable technical issues with Evonik's suppliers, it has led to...VESTANAT® IPDlThe production of the product is immediately severely affected. In light of the above reasons, Evonik will temporarily be unable to supply the quantities confirmed, ordered, or otherwise requested by customers in the coming weeks.VESTANAT® IPDI。3.Europe's first7.5ten thousand tonsPLAProject initiation.2028Recently, a leading biomaterials company in Belgium.FuterroAnnounced its first integrated biorefinery project in Europe, located in Normandy, France.7.5Ten thousand tons of polylactic acidPLAThe project has officially launched the engineering design and front-end engineering design.FEEDThe project has moved from the planning stage to substantial construction. Previously, the company had...2024Year11Monthly completionFirst round120010 million euros financingInject key funds to advance the project.FuterroEstablished in2007Year, is the second largest polylactic acid (PLAManufacturer, with business covering the entire chain of lactic acid fermentation, polymerization, and recycling. The company has established a presence in Bengbu, Anhui, China.10The 100,000-ton capacity (Fengyuan Biotech) will further consolidate its technological leadership position in this European project.4.8Double!NatureWorksLaunchPLANew ProductRecently, NatureWorksAnnounce the launchIngeo™ Extend Platform andIngeo Extend 4950D Product for biaxially oriented polylactic acidBOPLAThe production of films has brought about innovative changes and shows great application potential in fields such as food packaging.Ingeo Extend 4950D Based on a brand newIngeo™ PLA Developed from a polymer platform.BOPLA The thin-film production process demonstrates outstanding advantages. For machinery originally designed for the production of polypropylene and other polymers, usingIngeo Extend 4950D After that, biaxially stretched film manufacturers can achieve up to7 The horizontal stretching feature not only significantly enhances production efficiency but also greatly reduces production costs. Taking production scenarios such as coffee capsules, candy packaging, and single-serving food packaging bags as examples, this product holds significant value in optimizing production processes and controlling costs. 5.China's polypropylene export starts strong: Year-on-year growth in the first two months+34.95%2025Year2In which month did China's polypropylene export volume...23.8710,000 tons, month-on-month+39.26%，2025Year1-2Monthly cumulative export volume is41.01Ten thousand tons, year-on-year+34.95%Due to the accumulation of inventory during the holiday period, coupled with supply pressure, the domestic market price center has declined. Additionally, the significant appreciation of the exchange rate and the strong currency incentive policies for exports have boosted domestic companies' export sentiment.2The monthly export quantity has significantly increased.20253In the month, China's polypropylene export volume is expected to be34Near ten thousand tons, month-on-month increase.42.44%6.LyondellBasell announces Houston propylene expansion project.3Month27On that day, according to LyondellBasell (LYBThe company will invest in the expansion of its facilities located near Houston.Channelview2025The construction is expected to commence in the third quarter of the year.2028The device is expected to be put into production by the end of the year, with an annual output of approximately.4010,000 tons of propylene. The new reaction unit will use olefin metathesis technology to convert ethylene into propylene, which will further be used to produce polypropylene and propylene oxide. These are essential basic materials in daily life, widely used in industries such as food packaging, medical devices, automotive parts, aircraft de-icing fluids, building insulation materials, home decoration mats, and communication equipment.7.European industry associations call for strict limits on imported recycled plastic materials.European Plastics Recycling Association (EPRC)PRE）Recently issuedPREChairmanTon EmansIt is emphasized that the EU should quickly introduce import controls and implement existing regulations to restrict the import of recycled plastic materials that do not meet EU sustainability and safety standards. The EU's plastic recycling industry is on the brink of collapse. Cheap imported materials exacerbate the impact of rising energy prices and plastic recycling costs on EU recycling companies.PREThe data shows that.2023Since the beginning of the year, the plastic recycling capacity in the EU has shown a sharp decline.2024The total capacity scale of bankrupt recovery enterprises for the year is relatively.2023The year doubled.8.New progress! Berry International has expanded.B Loop Packaging SeriesBerry Globalannounced the expansion of itsB CircularSeries of standard packaging solutions. The company is designed for recycling and is expanding its range in the home and personal care market. Users can now access cost-effective and more sustainable packaging solutions. This expansion includes35PCRPlastic production products, from30%To100%The series includes specific packaging made from polypropylene, which can be enhanced through Berry's proprietary methods to further improve recyclability.CleanStream9.Endeavor 3DLaunchHPPA12 Flame retardant, suitable for electronic or electrical component enclosures.Endeavor 3D Announce the launchHP PA 12 FRThis is a halogen-free material, and the powder can be reused.60%。Endeavor 3D It is one of the first contract manufacturers in North America to provide this high-performance material, having been validated and approved by HP for use.Multi Jet Fusion （MJF） 3D Endeavor 3D This demonstrates that the adoption has further strengthened its commitment to providing industrial-grade components for professional applications in the electrical, robotics, and industrial sectors.10.Chery Automobile plans to invest in Turkey.10Billion dollars to build electric vehicle factory, annual production capacity.20ten thousand vehiclesAccording to Bloomberg, Chinese automaker Chery Automobile will invest in Turkey. 10 billion US dollars (approximately at the current exchange rate)72.62 Chery will invest 1 billion yuan (RMB) to build an electric vehicle factory. The Turkish Ministry of Industry announced this investment on Wednesday. Chery will establish a new factory in Samsun, Turkey, to produce electric vehicles and components, with an expected annual production capacity of...20 ten thousand vehicles. Overseas macro market information:The new tariffs will take effect on April 2. White House aide Will Scharf explained that the new tariffs will apply to "foreign-manufactured cars and light trucks," which are additional tariffs beyond the existing ones. Since most cars are composed of parts from different countries, the full details of the new tariff announcement remain unclear. Scharf estimates that the new tariffs will generate over $100 billion in new revenue for the United States each year.Moody's: Trump's auto tariffs will have a ripple effect in the Asia-Pacific region.Moody's report indicates that as the trade war has already put pressure on economic growth, U.S. President Trump has recently announced plans to impose tariffs on foreign-manufactured cars and automotive parts, which could have a significant impact on global automakers. In the Asia-Pacific region, Japan and South Korea are expected to be hit the hardest, as cars exported to the U.S. account for approximately 6% of Japan's exports and 4% of South Korea's exports. Rough estimates suggest that the tariffs could reduce Japan and South Korea's GDP growth by 0.2 to 0.5 percentage points. Moody's analysts state, "Given the lengthy and complex supply chain of the automotive manufacturing industry, the impact will ripple throughout the region, causing significant damage." They anticipate that automakers will increase investments in the U.S. in an effort to seek tariff exemptions or tax reductions.Brazilian President Lula: Will impose retaliatory tariffs on American goods."South Korea will introduce emergency measures next month to assist automobile manufacturers in response to Trump's tariffs on cars."South Korea's top trade official stated that the government will introduce measures to support the automotive industry by next month. The Minister of Trade, Industry and Energy expressed concerns that U.S. tariffs could create significant difficulties for car companies exporting to the U.S. and emphasized that they would work closely with the automotive industry to find solutions. He mentioned that emergency measures for the automotive sector would be announced in April in collaboration with relevant agencies. He did not provide specific details on what measures the government might take. Price Information:Renminbi to US Dollar Central Parity RateThe RMB exchange rate against the USD central parity is reported at 7.1763, down 9 points; the previous trading day's central parity was 7.1754, the official closing price of the previous trading day was 7.2635, and the night session closing price was 7.2691.Upstream raw material USD market pricesEthylene Asia: CFR Northeast Asia $855/ton; CFR Southeast Asia $920/ton.Acrylic Northeast Asia: FOB Korea average price $800/ton; CFR China average price $825/ton, an increase of $5/ton.Northern Asia CIF prices: Propane $616-618/ton; Butane $602-604/ton.The CIF price of frozen cargo in Taiwan is propane at 616-618 USD/ton; butane at 602-604 USD/ton.Film: $960/ton (CFR Huangpu);Injection molding: $1010/ton (spot price in Dongguan Bonded Zone);HDPE USD Market PriceFilm: $935-950/ton (CFR Huangpu);Hollow: 900-965 USD/ton (CFR Huangpu);Film: $1130-1135/ton (CFR Huangpu);Coating: $1360/ton (CFR Huangpu).Junjv: $935-970/ton (spot)Co-polymer: $995-1060/ton (CFR Huangpu spot)Membrane material: $1105/ton (CFR Huangpu);Pipe material: $1160/ton (CFR Shanghai).