Protectionism continues to build, as unemployment rises around the world.
ICIS news reports China has imposed tariffs of up to 36% on nylon 6. BASF will suffer a 30.4% tariff on US exports, and Honeywell 36.2%. Last month, of course, the US hit China with a 35% tariff on tyres.
The threat of more duty barriers may well lead to a move to supply domestic markets with locally produced product. It therefore represents an increasing threat to the globalised business model adopted by many chemical companies.
Mid-week update. India plans 20% duty on caustic soda, ICIS news .
Protectionism will be one of the key issues discussed in the blog’s free Budget Outlook webinar next week (details yesterday). If you would like to register, please email email@example.com or myself, with Chemicals and the Economy Group in the subject line.