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Tariffs Expand to PET Resin Amidst Market Confusion
In a surprising turn of events, President Donald Trump has added polyethylene terephthalate (PET) resin to the list of products impacted by recently enacted tariffs, effective September 8, 2025. This decision, communicated through a new executive order, has stirred mixed reactions among industry stakeholders, particularly the Association of Plastic Recyclers (APR), which warned of deepening confusion in an already volatile market.
Understanding the Impact of the Tariff Changes
Previously, PET resin was exempt from these tariffs, which have now caused concern among recyclers and manufacturers alike. The newly imposed duties will include both virgin PET and recycled PET (rPET), despite the fact that rPET lacks its own specific harmonized tariff schedule code. As a result, the updated tariffs will complicate marketplace dynamics as imported PET materials face increased costs—not yet specified—on top of the existing 6.5% duty that had been in place for certain HTS codes.
The Reaction from Industry Leaders
Steve Alexander, the CEO of the APR, voiced the organization’s concerns, highlighting that U.S. PET recyclers are under immense pressure due to a surge of low-cost imported materials which undermine their business. He noted that many brands are retreating from commitments to recycle, instead opting for cheaper virgin plastic sourced overseas. This trend raises critical questions about the future of recycling in the U.S. and the sustainability practices of major companies.
Market Analysis: Will the Tariffs Create Change?
James Derrico, from CellMark, indicated that while there’s uncertainty regarding the actual implementation of the tariffs, his company is adopting a wait-and-see stance. “We’re momentarily holding off on shipments while we determine who will be responsible for the tariff in the transactions,” he explained. This can lead to a temporary halt in business operations, heightening anxiety among suppliers and buyers in the PET market. The critical reality is that the overall market for PET is already weak, creating potential repercussions beyond tariff-related decisions.
A Broader Perspective on Plastic Imports
According to recent data from the International Trade Commission (ITC), imports of PET resin into the U.S. surged by 6.4% from January to July 2025, totaling approximately 975,420 metric tons. This statistic raises eyebrows, considering that just 11 countries are responsible for about 90% of these imports. However, the newly enacted tariffs will not apply to Canada and Mexico, signaling a strategic choice that keeps specific trade relations intact.
The Future of U.S. Recycling Capacity
As uncertainty looms over these changes, the APR is advocating for enhanced incentives from policymakers that promote recycled plastics sourced domestically. Alexander emphasized the pressing need to bolster U.S. recycling capacities to combat pollution effectively. With a commitment to reduce dependency on importation and production of new plastic, the roadmap ahead for U.S. plastics and recycling industries appears to be one filled with challenges and opportunities.
Conclusions: Navigating a Complex Landscape
The recent addition of PET resin to the reciprocal tariffs illustrates the tenuous and unpredictable nature of trade impacts on environmental and sustainability goals. Stakeholders in the recycling sector are urged to adapt swiftly to this evolving landscape.
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