What tariffs mean for European plastics buyers

Tariffs, trade dynamics and what they mean for European plastics buyers

Recent shifts in US trade policy are adding fresh complexity to an already challenging global landscape for plastics procurement. With a temporary pause on certain country-specific tariffs and continued exemptions for some materials, the structure of international pricing and availability is evolving once again. For European plastics buyers, especially those dependent on global supply chains, these developments are influencing short-term decisions and longer-term planning in subtle but important ways.

Short-term relief for global tariffs

One of the most recent developments is the temporary 90-day pause on country-specific reciprocal tariffs. This move resets many tariffs to a baseline of 10% on products from Europe to US, but not US to Europe. Depending on the region this could offer temporary relief to many plastics markets that have been caught in the crossfire of geopolitical tension. (Polymers typically move US to Europe)

However, this reset does not apply universally. China, Canada, and Mexico remain exceptions to this rule. Importantly for European buyers looking at US imports, PET resins are still exempt from additional tariffs. But virgin PE and PP resins are largely still subject to tariffs.

This means that pricing pressure remains elevated for these widely used resins, especially in scenarios where US imports are part of a procurement strategy.

How virgin resin tariffs shift market dynamics

While the direct implications for Europe may seem distant, the global nature of plastics trade means no market is isolated. Tariffs on US virgin resins, especially polyethylene, could suppress US exports. When resin producers have fewer destinations for their product, they are more likely to lower prices domestically. This can put downward pressure on international prices as well, especially in export-oriented supply chains (for the US but not so much Europe as imports are cheaper so prices would go up).

For European buyers, this creates a delicate balance. On one hand, suppressed prices in the US might provide some leverage in global negotiations. On the other hand, uncertainty around tariff durations and political shifts mean those price benefits could evaporate quickly. This makes it essential to understand not just price trends but the policies shaping them.

Broader policy shifts in the US plastics sector

Beyond tariffs, there are policy factors in play that may also affect global plastics markets. One key area to watch is potential deregulation. The US has seen signals that traditional petrochemical production could be incentivized under more industry-friendly environmental policy. This could lead to a rise in virgin plastics production.

More virgin plastic in the market tends to depress prices. For procurement managers, this poses both a risk and an opportunity. If the price of virgin resins drops, it may be possible to renegotiate contracts or secure more competitive bids from suppliers. But there’s also the risk of increased volatility, especially if policies shift again with future elections.

Strategic procurement in a volatile landscape

For European plastics buyers, particularly those in converting or packaging, the biggest challenge right now is managing uncertainty. A globalized supply chain means that a tariff decision in Washington can affect sourcing in Rotterdam. That’s why procurement leaders need more than just pricing—they need real context.

Understanding where supply is coming from, how political decisions are shaping flows, and what the likely short-term and long-term scenarios look like is vital. It’s no longer enough to simply compare spot prices or run a standard RFQ process. Strategic planning has to incorporate trade policy, logistics disruptions and pricing forecasts.

Procurement leaders need to act with confidence, not just react to change. From pricing forecasts and cost modeling to deep-dive analysis of trade and policy developments, ICIS provides the insights and intelligence needed to make well-informed buying decisions.

Whether you’re negotiating annual contracts or assessing spot market opportunities, ICIS gives you access to critical pricing trends, supply and demand outlooks and expert commentary. For those navigating the current trade climate, our dedicated topic pages on US tariffs, global logistics and policy impact in the chemicals and energy sector provide focused, up-to-date analysis.  Try ICIS today.