May 19–25, 2025: Chemical Industry Trade & Procurement Highlights

🇺🇸 U.S. Announces 50% Tariff on EU Goods, Shaking Global Chemical Supply Chains

Former President Donald Trump announced a 50% tariff on all EU imports starting June 1, along with a 25% tariff on overseas-produced smartphones (e.g., iPhones).This decision sparked strong backlash from European political and industrial leaders. Germany’s Economy Minister Katherina Reiche and Dutch Prime Minister Dick Schoof called for negotiations.German trade bodies (DIHK, BGA) and U.S. industry associations warned the move could disrupt global trade, raise inflation, and destabilize transatlantic relations.

🇪🇺 EU Proposes "Buy European" Procurement Strategy to Bolster Economic Sovereignty

EU Internal Market Commissioner Stéphane Séjourné introduced a “Buy European” policy proposal, allowing EU countries to prioritize local suppliers in strategic sectors.The move is intended to reduce dependency on foreign suppliers but may conflict with World Trade Organization (WTO) rules. It reflects the EU’s push for economic and technological autonomy.

🇺🇸 US Steel & Nippon Steel Deal Announced; Trump Signs Nuclear Deregulation Order

Trump announced a major cooperation between US Steel and Japan’s Nippon Steel, projected to create 70,000 jobs and bring $14 billion in economic gains.Additionally, a presidential order was signed to ease nuclear sector regulations and accelerate growth in the U.S. nuclear industry. US Steel shares surged by 21% following the announcement.

🌐 Expanded U.S. Tariffs Raise Cost Pressures in the Chemical Sector

The U.S. expanded Section 232 tariffs to apply 25% duties on all imported steel and aluminum, revoking long-standing exemptions for Canada, Mexico, and the EU.Additionally, a new “reciprocal tariff” system was introduced, with base 10% tariffs (potentially up to 50%) applied across a broad range of imported goods, including chemicals.While most reciprocal tariffs are paused for 90 days, the base tariffs are already impacting the cost structure.For instance, freight costs for monoethylene glycol (MEG) and ethanol are expected to rise 170–228%, and prices for commodity chemicals could increase by 33–37%.

🧪 ECHA Publishes Updated Boundary Case Catalogue for Chemicals Classification

The European Chemicals Agency (ECHA) released the 4th edition of the “Borderline Cases between Substances/Mixtures and Articles” catalogue. The update aims to help companies correctly classify chemical products under REACH and ensure compliance with EU regulations.