Industrial

What's the Tariff on Plastic Resin?

Plastic resins from Saudi Arabia, Canada, China.

💡
The 10% tariff on Plastic Resin is paid by American importers, not foreign manufacturers. Your 1 ton polyethylene now costs $1,320 instead of $1,200 — that's $120 more, or 10% of the sticker price going directly to tariff taxes.

Current Tariff Rate

10%

Pre-2025 Rate

6.5%

Rate Increase

+3.5pp

Price Impact

+10%

+$120

Real-World Price Impact

Before Tariffs

$1,200

1 ton polyethylene

After Tariffs

$1,320

1 ton polyethylene

That's $120 more per unit — a 10% price increase paid by the American buyer.

Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.

The Story Behind This Tariff

Plastic resin tariffs create an unusual dynamic because the US is actually a major petrochemical producer — yet still imports significant volumes of specialty resins. The 10% Section 122 tariff on polyethylene and other commodity resins primarily affects Canadian and Saudi Arabian imports. Canada's petrochemical industry, integrated with US Gulf Coast operations, faces disruption of long-established cross-border supply chains. Saudi Arabia's SABIC is a major low-cost producer leveraging cheap natural gas feedstock. The tariff is relatively modest but affects a material that touches virtually every manufactured product — from packaging and auto parts to medical devices and construction materials. US producers like Dow, ExxonMobil Chemical, and LyondellBasell benefit from price protection, though Gulf Coast production is already operating near capacity. The tariff may accelerate the ongoing shift away from single-use plastics by making virgin resin marginally more expensive relative to recycled alternatives.

📦 Supply Chain

Primary Origin

SA

Made in USA

65%

Import Volume

$14.2B

Alternatives

Domestic (Dow, ExxonMobil), Canada, South Korea

📅 Tariff Timeline

2018

Some Chinese resins included in Section 301

25% (China)

2020

China Phase One purchase agreement included resins

25%

2025

Section 122 baseline applies to all resin imports

10%

👥 Consumer Impact

Households Affected

130M

Annual Cost Per Household

$30

💡 Did You Know?

  • The US is the world's second-largest plastics producer but still imports $14B in resins annually for specialty applications
  • A single polyethylene plant costs $2-4B to build, making supply responses to tariffs extremely slow
  • Saudi Arabia's SABIC produces resin at 40% lower cost than US competitors due to virtually free natural gas feedstock

Tariff Details

HTS Code
3901.10
Current Rate
10%
Pre-2025 Rate
6.5%
Tariff Type
Section 122

Legal Authority

Section 122 (Balance of Payments)

Effective: April 2025

Baseline 10% tariff on imports to address balance of payments

The tariff on Plastic Resin is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.

Who Actually Pays This Tariff?

Despite claims that tariffs are paid by foreign countries, the 10% tariff on Plastic Resin is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.

  • ✓ The foreign seller receives the same price as before
  • ✓ The US importer pays 10% of the customs value to CBP
  • ✓ The retailer marks up the higher landed cost
  • ✓ You pay more at the register: $1,200 → $1,320

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