China Hits U.S., EU, Japan, and Taiwan with Steep Anti-Dumping Duties on High-Tech Plastics

preCharge News BUSINESS — China has slapped steep anti-dumping duties on POM copolymers from the United States, European Union, Japan, and Taiwan, the country’s Commerce Ministry announced Sunday. The move comes as a direct response to heightened U.S. tariffs on Chinese electric vehicles, computer chips, and other high-tech imports, adding a new layer of complexity to already strained trade relations.

China’s New Tariffs: Breaking Down the Numbers

Up to 74.9% Duties Target U.S. POM Imports

The harshest penalties hit U.S. exporters, who will face duties as high as 74.9% on POM copolymers, a versatile engineering plastic used in everything from automotive components to medical devices and electronics. The duties mark the culmination of a probe launched in May 2024, shortly after the Biden administration imposed new tariffs on key Chinese exports, including electric vehicles and semiconductor chips.

For EU manufacturers, China set duties at 34.5%, while Japanese imports face a 35.5% rate, except for Asahi Kasei Corp, which received a significantly lower, company-specific rate of 24.5%. Taiwanese shipments were hit with general duties of 32.6%, although major producers like Formosa Plastics and Polyplastics Taiwan secured much lower rates of 4% and 3.8%, respectively.

Why POM Copolymers Are a Strategic Target

Key Material for High-Tech Manufacturing

POM copolymers, also known as polyoxymethylene, are critical to high-tech industries. They can partially replace metals like copper and zinc, making them vital for lightweight and high-strength components in automotive, consumer electronics, and medical equipment. Beijing’s move to target this sector sends a clear message about its ability to disrupt global supply chains, particularly as nations scramble to secure critical materials amid rising geopolitical tensions.

Geopolitical Ripple Effects

Impact on U.S.-China Trade Truce Hopes

The new duties come just as hopes were rising for a potential easing of the U.S.-China trade war. On Monday, the two sides announced a 90-day tariff truce aimed at reducing trade barriers, a deal that Chinese state media, including the Global Times, suggested could be extended. However, Sunday’s announcement throws those hopes into question, raising the stakes ahead of critical trade talks.

Meanwhile, the Asia-Pacific Economic Cooperation (APEC) group issued a stark warning about the challenges facing the global trading system in a communiqué released Friday, highlighting the risks of rising protectionism.