Asian chemical shares rise on pause in US-China tariff war

SINGAPORE (ICIS)–Asian chemical shares were mostly higher on Tuesday, after the US and China agreed to significantly reduce tariffs on each other for 90 days.

At 01:30 GMT on Tuesday, Japan’s Mitsui Chemicals rose by 0.94%, while Asahi Kasei slipped by 0.54% in Tokyo. South Korean producer LG Chem was down 2.38% in Seoul.

Malaysia’s PETRONAS Chemicals Group (PCG) was up by 1.71% in Kuala Lumpur, while palm oil and oleochemicals major Wilmar International rose by 0.98% in Singapore.

Japan’s bellwether Nikkei 225 was up by 1.84% at 38,335.75, while South Korea’s KOSPI Composite inched up by 0.30% to 2,615.03.

In China, Hong Kong’s Hang Seng index was up 2.98% at 23,549.46, and the Shenzhen Composite bourse rose by 1.70% to 2,004.13.

US chemical stocks closed higher overnight following news of the trade deal.

In the US-China agreement announced on 12 May, the US will lower tariffs on imports from China to 30% from the previous “unsustainable” 145%, consisting of a baseline 10% tariff on top of the 20% fentanyl-related tariff.

China, meanwhile, lowered its tariffs on the US to just 10% from 125%, while also suspending non-tariff countermeasures taken against the US since 2 April.

These new measures will take place by 14 May and last for 90 days, according to a joint statement by both parties.

The parties will then continue discussions about economic and trade relations, the statement said.

However, uncertainty persists as US President Donald Trump seeks talks with China President Xi Jinping.

Meanwhile, the US’ hefty “reciprocal” tariffs on other major Asian economies such as Japan, South Korea, India and southeast Asian countries – first announced on 2 April and then suspended for 90 days – may be implemented in early July.

Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy.

Thumbnail image: At the terminal of Shanghai Port in eastern China on 11 May 2025. (Costfoto/NurPhoto/Shutterstock)