In recent updates, U.S tariffs have been introduced on European chemical products. The new tariffs took effect on April 9th, 2025, while also being part of a broader trade act initiated by the United States which will be known as ‘Liberation Day”. The reason for these tariffs is aimed at addressing certain trade differences and to control limits between the U.S. and the European Union.
The European Commission states that on the ‘10th February 2025, the US announced that it would impose 25% tariffs on imports of steel and aluminium and derivative products. President von der Leyen immediately warned that such tariffs are “bad for business, worse for consumers” and would trigger a firm and proportionate European response.)’ They also stated that, ‘the US tariffs of up to 25% will apply on industrial- grade steel and aluminium, other steel and aluminium semifinished and finished products, and also their derivative commercial products (from machinery parts to knitting needles), covering up to €26 billion worth of EU exports to the U.S.’. This will cause quite a disruption to transatlantic trade and companies, including many of our members feeling the knock-on effect. Although the tariffs won’t hit all our products directly it will have an impact on many of our members by several categories within the European chemical industry now exposed to 20% import duty when entering the U.S. market. This could result in broader problems with logistics, pricing and in market confidence and may lead to an impact on operations across executive groups. Below are just some of the effects that could happen:
Rise in financial strain:
If any of our member’s product line or raw materials are included in the tariff range then the landed costs for our U.S. clients will rise, resulting in:
- Pushing clients to search for an alternative sourcing partner, most likely within the United States.
- Reducing the competition in pricing of PlusChem’s offerings within the U.S.
- Possible reductions in orders with American customers.
Disruption in supply chain projections:
Many U.S. buyers will tend to stockpile ahead of the tariff deadlines and new import/export regulations could possibly slow down the logistics. Many other customers including PlusChem could encounter:
- More complicated inventory and effective planning.
- A temporary spike in demand followed by different periods with fewer orders.
- Adjusting delivery timelines or sourcing routes.
Chance to realign marketing strategy:
While these new tariffs come with a challenge, they also create a space for companies like PlusChem to stand out by:
- Offering more consultative support to customers in organising rising costs.
- Displaying clear sourcing and sustainable functioning, especially during earth month, April, the time when ESG stories are a clear focus. Euronext Corporate Solutions says ‘Your ESG story is about communicating your environmental and social performance as well as your governance credentials to your investors and potential investors. It emphasises your commitment and sustainability efforts as well as the strategies and processes that you have in place to achieve them’.
The new U.S. tariffs may not hit PlusChem directly, but they will more than likely impact the wider environment which we operate in. By staying active and transparent, we can not only reduce risk but potentially enhance our value scheme during this period of uncertainty within the market.
