Market Insight
Global Chemical Markets Brace for Structural Upheaval as Trade Tensions Intensify

From Will Beacham* 3 min Reading Time

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The global chemical industry is entering a period of profound uncertainty as higher tariffs and escalating trade tensions threaten to dismantle decades of globalization.

Average US tariffs surged from 2.4 % at the start of the year to a peak of 28 % in April before settling at 16.8 %—the highest level since 1935. (Source:  Arthur Woods - stock.adobe.com)
Average US tariffs surged from 2.4 % at the start of the year to a peak of 28 % in April before settling at 16.8 %—the highest level since 1935.
(Source: Arthur Woods - stock.adobe.com)

Since US President Trump’s 2 April Liberation Day marked the start of the latest trade war, major economies have struggled with slow or stagnant economic growth, while chemical producers face low prices, margins and disrupted supply chains.

Average US tariffs surged from 2.4 % at the start of the year to a peak of 28 % in April before settling at 16.8 %—the highest level since 1935. This sharp increase has weighed heavily on global trade flows, undermining confidence and delaying investment decisions. For chemical companies, the implications are stark: export-driven business models that dominated for decades are now under threat.

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