Beijing has escalated trade tensions by announcing meaningful anti-dumping duties on imports of POM (polyoxymethylene) copolymers,a crucial type of engineering plastic. The duties, reaching as high as 74.9%, target products originating from the united States, the European Union, Japan, and Taiwan.

The Ministry of Commerce finalized its investigation, initiated in May 2024, shortly after the U.S. government sharply increased tariffs on Chinese electric vehicles, computer chips, and other imports. This move is widely seen as a retaliatory measure in an ongoing trade dispute.

Duty Breakdown: Who Pays What?

• United States: Faces the highest anti-dumping rate at 74.9%.
• European Union: Shipments will be subject to a 34.5% duty.
• japan: A general duty of 35.5% applies, with Asahi Kasei corp. receiving a company-specific rate of 24.5%.
• Taiwan: General duties are set at 32.6%,while Formosa Plastics will incur a 4% tariff,and Polyplastics Taiwan,3.8%.

Background: The Investigation and Initial Findings

In January, the Ministry of Commerce stated that preliminary investigations confirmed dumping was taking place and implemented provisional anti-dumping measures in the form of a deposit starting January 24.

Wider Context: Trade Tensions and Potential Thaw

despite these new tariffs, there have been recent signals suggesting a potential easing of trade tensions between the U.S. and China. Both countries announced an agreement to reduce reciprocal tariffs in a 90-day truce. According to state media,this deal should be extended.

However, the Asia-Pacific Economic Cooperation (APEC) group of nations recently warned of essential challenges facing the global trading system, highlighting the ongoing uncertainties in international trade relations.