How will the tough-on-China Trump's coming to power affect China's paper and plastic packaging industry?
On November 6, local time, according to the latest news from NBC and Sky News, Republican presidential candidate Trump announced his victory in the 2024 US election and thanked his supporters when he spoke to supporters in Florida. Many people will be very concerned about the impact of Trump's victory on China's exports, especially the export of pulp molded tableware, which is suffering from anti-dumping and anti-subsidy investigations. Extended reading: Zhongxin shares have just been listed and hit by the US anti-dumping hammer! Limit down!
On October 8, 2024, the Biden administration announced the launch of anti-dumping and anti-subsidy investigations on thermoformed molded fiber products originating in China and Vietnam (US Customs Tariff Numbers: 4823.70.0020 and 4823.70.0040). The products involved include thermoformed molded fiber products, including but not limited to plates, bowls, clamshells, trays, lids, food or catering service contact packaging, and consumer goods or other product packaging.
This move is undoubtedly a heavy blow to China's pulp molding processing industry.However, fortune and misfortune are interdependent. After the Democrats were driven out of office, Trump, who is tougher on China, came to power, which is likely to be a good thing.
Although Trump once said that if elected, he would impose higher tariffs on Chinese goods, and even proposed to increase the tariffs on imports from China to 60% and abolish China's most-favored-nation treatment. If the new government adopts a policy of uniformly increasing tariffs, the anti-dumping and countervailing investigations on paper and plastic tableware may be suspended, which seems to be a blessing in disguise.
At the same time, we see that in the four years after Biden took office, China's exports have increased wildly from 17 trillion yuan to 24 trillion yuan, which has indirectly led to the delay in the start of our internal circulation. When the tough Trump comes to power, China may accelerate the process of starting the internal circulation, and the pulp molding industry will benefit.
Once the country changes export subsidies to environmental protection subsidies, it will further promote the development of the paper-plastic industry.
