What's the Tariff on Plastic Resin?
Plastic resins from Saudi Arabia, Canada, China.
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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