"According to the news on the website of the Ministry of Finance on the 11th, the Tariff Commission of the State Council issued a notice today. Starting from April 12th, the additional tariff rate specified in the 'Notice of the Tariff Commission of the State Council on Adjusting the Additional Tariff Measures for Imported Goods Originating from the United States' (Notice No. 5 of the Tariff Commission in 2025) will be adjusted, increasing from 84% to 125%. Given that, at the current tariff level, US goods exported to China have no possibility of being accepted by the market. If the US continues to impose additional tariffs on Chinese goods exported to the US in the future, China will ignore it." Recently, with the continuous adjustment of tariffs, most bulk commodity futures have dropped sharply, and some varieties have reached the daily limit several times. It can be said that the sudden event of imposing additional tariffs caught everyone off guard. However, in the later stage, as the event is digested or develops, prices should still be corrected to some extent, especially for the varieties with gaps in futures, such as PVC. The impact of imposing additional tariffs is more on the import and export side. Since the import volume of PVC is relatively small, we will not conduct a detailed analysis of imports for now, and only look at the situation and impact on the export side. Impact on PVC Exports In 2024, the total export volume of PVC powder in China was approximately 2.6175 million tons. The top five trading partners were India, Vietnam, Thailand, Nigeria, and Uzbekistan. The main export countries and regions were India, Southeast Asia, Africa, etc. The export volume to the United States was not large. Therefore, imposing additional tariffs has little impact on the export of China's PVC raw materials. Impact on the Export of PVC Products China's main exported downstream PVC products mainly include PVC flooring, PVC hard pipes, PVC sheets, films, and PVC flooring products. Through statistics, PVC products are mainly exported to regions such as Europe and the United States, and the export volume to the United States accounts for a significant share. Therefore, imposing additional tariffs will affect the export volume of downstream PVC products, which is somewhat negative for the downstream demand of PVC. In addition, due to the current downturn in the domestic real estate industry and the economic slowdown, it is relatively difficult to sell downstream PVC products domestically. Expanding domestic demand in the later stage is still the key. The following is the export situation of PVC flooring in 2024: PVC Flooring (Accounting for 31.12% of Exports to the United States) PVC flooring is a common home decoration material, which has the characteristics of wear resistance, waterproofing, and easy installation, so there is a large demand in the international market. In 2024, the total export volume of PVC flooring was 4.736 million tons, among whi...
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