China will impose a steep 75 percent anti-dumping tariff on imports of polyformaldehyde copolymers from the United States, intensifying ongoing trade friction between the world’s two largest economies, the Ministry of Commerce announced on Sunday.
The tax, effective Monday and set to last five years, targets a key engineering plastic widely used in automotive components, electronics, construction materials, and pharmaceuticals. Lightweight and durable, polyformaldehyde copolymers are commonly used as a substitute for metals like copper and zinc.
Despite a recent 90-day tariff truce between Washington and Beijing, the imposition of these duties signals that trade tensions remain far from resolved. Under the truce, both countries agreed to reduce most tariffs and to maintain regular channels of communication to manage disputes and pursue further negotiations.
However, the Chinese Ministry of Commerce said its anti-dumping investigation concluded that imports of polyformaldehyde copolymers from the U.S., European Union, Taiwan, and Japan were being sold below fair market value and had inflicted “substantial damage” on the domestic industry.
In addition to the 75 percent levy on U.S. imports, Chinese authorities will apply duties ranging from 32.6 to 35.5 percent on the same plastic from the EU, Taiwan, and Japan. New exporters from the affected regions will be allowed to request a review of their status.
This latest move may further complicate China’s already fragile trade relationship with the European Union, which has raised growing concerns about China’s industrial overcapacity. Last year, the EU imposed significant tariffs on Chinese-made electric vehicles, prompting retaliatory steps from Beijing.
While the U.S. and China reached a tentative agreement last week to ease tariff levels and maintain close dialogue, the new duties underscore the fragility of that accord and highlight ongoing friction in sectors ranging from advanced manufacturing to clean technology.
With these new tariffs, China appears to be reinforcing its stance on protecting domestic industries against foreign competition, even as it attempts to balance broader diplomatic and economic ties with key trading partners.
