China has announced a steep 75% anti-dumping tax on imports of polyformaldehyde copolymers from the United States, escalating trade tensions despite a recently agreed 90-day tariff truce between Washington and Beijing.
The Chinese Ministry of Commerce said Sunday that a recent investigation found these imports were being dumped — sold below market value — in a way that caused substantial harm to China’s domestic industry. The anti-dumping duties will be in effect for five years starting Monday.
Polyformaldehyde copolymers are a high-performance engineering plastic used widely across industries including automotive, electronics, construction, pharmaceuticals, and consumer goods. The lightweight, durable material is often used as a substitute for metals such as copper and zinc.
In addition to U.S. firms, companies from the European Union, Taiwan, and Japan will also be hit with anti-dumping tariffs ranging from 32.6% to 35.5%, adding further strain to China’s trade relationships beyond the U.S.
The announcement follows a temporary de-escalation in the broader U.S.-China trade conflict. Just last week, both sides agreed to reduce tariffs imposed in April and pledged to maintain regular communication through a newly established trade consultation channel. However, the new duties raise fresh concerns over the durability of that deal.
Beijing’s move is likely to frustrate foreign firms, especially those in Europe, which has increasingly voiced concerns about Chinese industrial overcapacity and unfair competition. Last year, the EU imposed significant tariffs on Chinese-made electric vehicles, leading to retaliatory measures from China.
Trade analysts warn the latest action could fuel further disputes between China and its key trading partners. While new exporters from the affected countries can request a review, the decision signals China’s continued willingness to protect its industrial sectors, even at the cost of straining diplomatic and economic ties.
