AFPM ’25: AFPM warns against tariffs, welcomes red-tape purge

SAN ANTONIO (ICIS)–The American Fuel & Petrochemical Manufacturers (AFPM) stressed on Monday the need for open markets and warned about the dangers that tariffs pose to the industry – while welcoming proposals by the new US administration that will cut red tape and address longstanding regulatory challenges.

“We need open markets and fair trade,” said Chet Thompson, president and CEO of the AFPM. He made his comments during the group’s International Petrochemical Conference (IPC).

“Trade policies are critical to our industries, so make no mistake, no matter what you hear, tariffs and closed markets will increase costs for consumers,” Thompson said. “They will make US feedstocks and products less competitive globally.”

The new administration of President Donald Trump has adopted several tariffs and has proposed new ones.

Tariffs could increase the costs of raw materials used by the petrochemical and refining industries, such as heavier grades of crude oil and minerals used to make catalysts and plastic additives.

US tariffs also expose the petrochemical industry to retaliation because of the magnitude of its trade surplus. Already Canada and the EU have proposed retaliatory tariffs on shipments of polyethylene (PE) made in the US.

FAVORABLE REGULATORY ENVIRONMENT
Outside of tariffs, the new administration is adopting a regulatory climate that is more favorable to petrochemicals than that of the previous president, Joe Biden.

“It feels like a heavy weight has been lifted, and we have a little room to breathe,” Thompson said.

The new administration has enthusiastically embraced oil and gas production.

The Environmental Protection Agency (EPA) is conducting a review of many policies with the intent of considering longstanding issues of the petrochemical industry.

Something as seemingly mundane as an executive order removing government restrictions on plastic straws represents a change in sentiment that favors petrochemical producers.

Under the previous administration, federal agencies introduced regulations that increased costs for petrochemical producers while producing little – if any – benefit to the industry.

Legislators were proposing moratoria on new plastic plants. Early in Biden’s term, he accused oil companies of price gouging. The former president imposed restrictions on oil production and halted the issuance of liquefied natural gas (LNG) permits.

AFPM POLICY GOALS
Thompson outlined five policy goals that the AFPM has shared with the new administration.

• Consumer choice. Government should not adopt policies that restrict access for plastics and chemicals. Nor should the government impose moratoria on new plastic plants or impose caps on plastic production.
• US policies should make the most of its reserves of oil and natural gas.
• Embrace open markets and fair trade.
• Adopt permit reform to make it easier for companies to build plants, pipelines and infrastructure such as bridges and ports.
• Pursue an all-of-the-above policy for energy and materials. “Every objective forecast says the world is going to need more energy and more petrochemicals of all kinds, not less,” Thompson said. That need to produce more will come with an even greater responsibility for petrochemical producers to be more sustainable and to foster the circular economy.

AFPM ADVOCATES PARTICIPATION IN UN PLASTIC TREATY
Thompson stressed that the petrochemical industry and the US need to continue participating in the UN plastic treaty negotiations.

The next UN meeting on the treaty (INC 5.2) is expected be held 5-14 August 2025 in Geneva, Switzerland.

“We will continue to advocate for this administration to remain at the table to reach a consensus on a global agreement to end plastic waste,” he said. “We must stay involved in this process.”

Hosted by the AFPM, the IPC runs through Tuesday.

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