China Strikes Industrial Plastics SectorChina Imposes Harsh Tariffs on POM Plastics: Which Companies Are Hit the Hardest?
By Ion Jauregui – Analyst at ActivTrades
China has reignited trade tensions by announcing anti-dumping tariffs of up to 74.9% on imports of polyoxymethylene (POM) copolymers—a high-performance plastic widely used in the automotive, electronics, and consumer goods industries. The measure directly affects manufacturers from the United States, the European Union, Japan, and Taiwan, with varying degrees of severity.
U.S. exporters are the hardest hit, facing tariffs of up to 74.9%, followed by European companies at 34.5% and Japanese firms at 35.5%. Taiwanese exporters are also targeted, though with variable rates depending on the supplier.
Companies in the Crosshairs
Among the most affected are U.S. giants Celanese Corporation and DuPont de Nemours, both with strong exposure to China’s engineering plastics market. In Europe, BASF and Celanese’s German subsidiary Ticona GmbH could see their competitiveness eroded by higher costs. From Japan, firms like Mitsubishi Chemical and Asahi Kasei are also likely to feel the pinch due to their significant export volumes of POM to China.
BASF Pressured to Reinvent Itself
For BASF, the move comes at a critical time. The company is already under pressure from rising energy costs in Europe and weak industrial demand. Its share price has been volatile, influenced by macroeconomic factors and its significant exposure to China, where its engineering plastics division generates a major portion of revenue. These new tariffs may further hamper profitability in the region.
BASF is facing one of its most challenging periods in years. In addition to high energy costs and sluggish demand, the Chinese tariffs now threaten its position in Asia. The company has already launched a €2 billion cost-cutting program and is restructuring non-core assets. It also plans to reduce its annual dividend to €2.25 per share from 2025 to 2028, breaking with its long-standing stable payout policy. Shares are trading near €44, in a long-term downtrend. Still, analysts are watching the development of its new China chemical complex and upcoming divestitures, which could mark a turning point in future profitability.
Technically, BASF shares have been trading between a high of €52.33 in March and a low of €35.66 in April. Its current trading zone reflects a key support-resistance area, with the RSI currently neutral at 50%.
Impact on the Global Supply Chain
POM plays a vital role in manufacturing precision components such as gears, valves, electrical connectors, and automotive parts. With these tariffs in place, many Chinese firms may turn to domestic suppliers or regional alternatives like South Korea, reducing market share for Western and Japanese exporters that previously benefited from cost advantages.
A New Front in the Trade War
This decision emerges amid an already tense global environment, particularly between the U.S. and China. For investors, it adds a layer of geopolitical risk and raises the possibility of supply chain realignment in the medium term.
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