US Exempts Key Petrochemicals from Tariffs, but PE Faces Uncertain Export Future

The US has imposed sweeping tariffs on about 90 countries as of April 2, but has excluded key petrochemicals such as crude oil, NGL, ethylene, propylene, PE, PP, and PET from the list. Other chemicals under HTS code 39, including polyamides, polyester, epoxide resins, and silicones, were also spared. However, styrene, PS, PVC, and ethane remain subject to tariffs.

The exemptions appear to be a strategic move to protect the domestic petrochemical industry and maintain stable exports. Still, concerns linger as the exempted products—like PE—are major US export items. The aim may be to avoid triggering retaliation, but its success depends on how trade partners respond.

China, the largest buyer of US PE, has already hit back with 34% tariffs on all US imports, cutting off a major market. The EU and Mexico, also key PE buyers, have hinted at countermeasures, though European industry groups are urging restraint due to fears of rising costs and job losses.

With the US holding a 35% share of the EU’s PE imports in 2024, there's still a chance the EU might soften its stance. But for now, the future of US PE exports remains uncertain amid ongoing global trade tensions.

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