In a significant move that could further strain global trade relationships, China announced on Sunday, May 18, 2025, that it will impose anti-dumping duties of up to 74.9% on imports of POM copolymers, a type of engineering plastic, from the United States, the European Union, Japan, and Taiwan. The decision comes as part of the Chinese commerce ministry’s conclusion to a year-long investigation into alleged dumping of these products at unfairly low prices.
Key Details of the Decision
The Chinese Ministry of Commerce initiated its investigation in May 2024, a few months after the United States increased tariffs on Chinese imports, including electric vehicles, computer chips, and other key goods. Following initial findings in January 2025 that dumping was indeed occurring, China had already implemented preliminary anti-dumping measures in the form of deposits starting January 24. Sunday’s announcement formalized and expanded these measures.
The new duties will vary by country and company:
- United States: Shipments face the steepest tariffs, with anti-dumping rates as high as 74.9%.
- European Union: European imports will face duties of 34.5%.
- Japan: A general duty of 35.5% applies, except for Asahi Kasei Corp, which received a reduced, company-specific rate of 24.5%.
- Taiwan: A general duty of 32.6% is in place. However, two Taiwanese companies received significantly lower tariffs: 4% for Formosa Plastics and 3.8% for Polyplastics Taiwan.
These duties target POM copolymers, a versatile engineering plastic often used as a substitute for metals like copper and zinc. The material has applications in various industries, including automotive parts, electronics, and medical equipment.
Trade Tensions in Context
This development marks the latest chapter in the ongoing trade disputes between China and other major economies, particularly the United States. The anti-dumping probe was launched after the U.S. imposed higher tariffs on Chinese goods in 2024, escalating tensions between the world’s two largest economies.
China’s announcement comes at a time when hopes for easing trade tensions had been rising. Earlier this week, both countries agreed to a 90-day truce to lower reciprocal tariffs, a move welcomed by many as a potential step toward resolving the broader trade war. However, China’s decision to impose these steep anti-dumping duties underscores the challenges that remain in achieving a lasting resolution.
Global Implications
The Asia-Pacific Economic Cooperation (APEC) group of nations recently issued a communique warning of “fundamental challenges” to the global trading system. China’s latest decision could further complicate global trade dynamics, particularly as nations grapple with supply chain disruptions, inflation, and economic uncertainty.
For industries reliant on POM copolymers, the new duties could result in increased costs and potential supply shortages. Companies in the automotive, electronics, and medical sectors may need to explore alternative suppliers or materials to mitigate the impact.
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