Asia petrochemical shares drop as US tariffs on imports from China hit 145%

SINGAPORE (ICIS)–Asian chemical shares fell on Friday amid deepening concerns over a global trade war after the White House clarified that the US’ tariffs on China has risen to 145%.

By 01:15 GMT, Japanese producers Asahi Kasei and Mitsui Chemicals had fallen by 5.16% and 4.03% lower respectively in Tokyo, while LG Chem was down by 2.89% in Seoul.

Malaysian producer PETRONAS Chemicals Group (PCG) was down by 1.03% in Kuala Lumpur while palm oil and oleochemicals major Wilmar International fell by 1.27% in Singapore.

Japan’s bellwether Nikkei 225 fell by 4.60% to 33,018.51 while South Korea’s KOSPI Composite was down by 1.65% at 2,404.77.

US chemical shares fell again, offsetting most gains on 10 April after Trump reduced nearly every reciprocal tariff on other countries besides China to 10%.

An escalating trade war initially as both Trump and China ratcheted up their tariffs, but the US president said on 10 April he was willing to make a deal to end the war.

China has pivoted to trade talks with the EU as it seeks to improve trade relations with other states and has said it will “fight to the end” any trade war initiated by the US.

The cumulative tariff rate on China now stands at 145%, consisting of the new 125% duty on goods, on top of the 20% rate already imposed earlier to pressure China to clamp down on alleged fentanyl trafficking.

China’s own 84% retaliatory tariffs on US imports came into effect on 10 April.

Thumbnail image shows Shanghai Port in China (Source: Costfoto/NurPhoto/Shutterstock)

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