US-origin PE, PP appear in provisional UK tariff list

Market: Petrochemicals
04/04/25

The UK government has included polyethylene (PE) and polypropylene (PP) imports from the US in a list of products that could be subject to retaliatory tariffs.

All PE and PP HS codes appear on the list published on 3 April. The document is at this stage for consultation and only indicative of goods that could fall under the review. No details are known so far on the tariff levels nor when they could be implemented, although the deadline for responses is 1 May.

This comes after US President Donald Trump's announcement on 2 April of a minimum 10pc global levy on imports from all trade partners, in addition to existing levies. The tariff on imports from the UK is 10pc, and from the EU 20pc.

The UK imported 173,000t of PE from the US in 2024 and 7,000t of PP. LLDPE under HS code 390140 was omitted from the UK tariff list, a grade which accounts for 45pc of all UK PE imports from the US. This means that 96,000t of PE would fall under the provisional tariffs.

The UK has "a range of levers" at its disposal for responding to the US' levies and will continue speaking with Washington on an "economic prosperity deal", UK prime minister Keir Starmer said on 3 April.

The import tariffs imposed by the US on 2 April present a "significant risk" to the global economy, according to the IMF.

President Trump is holding firm on the tariffs, even as US stock prices tumble, but other US politicians are less convinced. The US Senate is attempting to block tariffs, but legislative action is unlikely to become law.

By Tim van Gardingen

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