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Influence of China's increased tariffs on the U.S. nylon-related products

Views: 0     Author: Site Editor     Publish Time: 2019-06-24      Origin: Site

U.S. Customs and Border Protection has stated officially on May 9 that US will raise tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent from May 10, 2019. 


In response, China has decided to increase tariffs on the bulk of $60 billion of US imports to three categories of rates between 10 percent and 25 percent. For the rest of the US imports, the duty rate remains at 5 percent, according to a statement released by the Customs Tariff Commission of the State Council. 


Below table shows nylon-related products included in the revised tariff list. 

Additional   tariff

HS code

Product

Import volume   from the U.S. in 2018 (mt)

Proportion of   import from the U.S.

25%

29171200

Adipic acid, its   salts&esters

246

1.39%

39081012

Slices/chips of   polyamide-6

1839

0.49%

39169010

Monofilament&rods&sticks&profile   shapes, of polyamides

191.1

2.88%

54021910

High tenacity   yarn of nylon-6

14

0.57%

54021920

High tenacity   yarn of nylon-6,6

131

0.78%

54023111

Elastic filament   of nylon-6, psy,≤50tex, not for retail sale

12

0.23%

54023112

Elastic filament   of nylon-6,6,psy,≤50tex, not for retail sale

0

0.00%

54023119

Elastic filament   of other polyamides,≤5tex, not for retail sale

3.1

0.82%

54023190

Other textured   yarn of polyamides,≤5tex, not for retail sale

8.3

0.13%

54023219

Elastic filament   of other polyamides,>50tex, not   for retail sale

0

0.00%

54024510

Single yarn of   nylon-6, with≤50turns/m, not for retail sale

41

0.07%

54025110

Single yarn of   nylon-6, with>50turns/m, not for retail sale

0.8

0.04%

54026110

Multiple or   cabled nylon 6 spun yarn, not for retail

284.6

18.96%

54026120

Multiple or   cabled yarn of nylon-6,6, not for retail sale

27.5

1.55%

54026190

Multiple or   cabled yarn of other polyamides, not for retail sale sale

13.3

4.26%

54071010

Woven fabrics of   high tenacity yarn of nylon or other polyamides

134.8

2.60%

54074100

Unbleached or   bleached woven fabrics, nylon etc.≥85%

273 ('000 m)

0.12%

54074200

Dyed woven   fabrics of synthetic filament yarn, nylon etc.≥85%

245 ('000 m)

0.25%

54074300

Coloured woven   fabrics of synthetic filament yarn, nylon etc.≥85%

12 ('000 m)

0.54%

54074400

Printed woven   fabrics of synthetic filament yarn, nylon etc.≥85%

24 ('000 m)

1.96%

55011000

Synthetic   filament tow of nylon or other polyamides

24.5

2.16%

55061090

Synthetic staple   fibers of nylon or other polyamides, carded

0.4

0.16%

55091200

Multiple or   cabled yarn,staple fibres of nylon/other polyamides≥85%

0.9

0.22%

59021010

Tyre cord fabric   of high tenacity yarn of polyamide-6(nylon-6)

0

0.00%

59021020

Tyre cord fabric   of high tenacity yarn of polyamide-6,6(nylon-6,6)

100

1.31%

59021090

Other tyre cord   fabric of high tenacity yarn of nylon or other polyamides

0

0.00%

20%

39081090

Other primary   polyamide -6, -11, -12, -6,6, -6,9, -6,10 or -6,12

2687.5

9.67%

39209200

Plates/sheets/flm/foil/strip   of polyamides, non-cellular

306

4.61%

10%

39081019

Polyamide-11,-12,-6,9,-6,10   or -6,12,slices/chips

2456.9

11.31%

54023211

Elastic filament   of nylon-6, psy,>50tex, not   for retail sale

1998.2

33.14%

54023212

Elastic filament   of nylon-6,6,psy,>50tex, not   for retail sale

204.4

24.97%

54023290

Other textured   yarn of polyamides,>50tex, not   for retail sale

65.9

20.13%

54024520

Single yarn of   nylon-6,6, with≤50turns/m, not for retail sale

523

12.93%

54024590

Other yarn of   nylon/polyamides,single,untwist/twist≤50turns/m,not retail

2.3

1.86%

55031900

Staple fibres,   of nylon or other polyamides not carded, etc

4152

49.15%

55091100

Single yarn,   staple fibres of nylon/other polyamides≥85%

0.9

1.12%

57032000

Tufted floor   coverings of nylon or other polyamides

5040.2

43.39%

5%

29212110

Ethylenediamine

6142

19.57%

29269090

Adiponitrile and   other nitrile compounds

228969

78.90%

(1) The nylon products involved cover a wide range, including PA6, textile filament, twisted yarn, industrial yarn, cord fabric, film, staple fiber and other main and niche products. 


(2) Most of the nylon-related products imported from the United States accounted for less than 3% of the total imports, and a small part takes around 20-30%, but of import volumes merely tens of or hundreds of tons. The demand is minimal compared to the Chinese market. 


(3) Nylon staple fiber imports from the United States account for nearly 50% of the total NSF imports of China, but imports accounted for only 1-2% of the domestic staple fiber market consumption, so the impact is not obvious. 


(4) The import volume of nylon carpet from the U.S. is around 0.5 million tons, accounting for nearly 43% of the total import volume of nylon carpets. However, similar with staple fiber, imports only takes a small fraction in overall China market and the influence is trivial as well. 


(5) The amount of adiponitrile imported from the U.S. is nearly 230,000 tons, accounting for 78.9% of the total import of adiponitrile. But part of the imports are from processing imports, which are not affected by the tariff adjustment. And cost for imports from ordinary imports are normally shared by both sell and buy sides. Since the fourth quarter of 2018, both adiponitrile and PA66 prices have been falling continuously, and the decline has significantly exceeded the 5% tariff adjustment. Therefore, the impact of taxation on this part is not obvious. 


Given all the facts stated above, the tariff adjustment on nylon-related production from the U.S. shall not be impacting import of Chinese enterprises significantly. 


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