U.S. imposes full tariffs on PET and recycled PET imports

Washington, DC – In a major shift in trade policy, the United States has officially imposed full tariffs on imports of polyethylene terephthalate (PET) and recycled PET (rPET), effective September 8, 2025. The decision, announced through an Executive Order signed by President Donald J. Trump, removes previous exemptions that allowed duty-free access for these materials, particularly from Southeast and South Asian countries.

The new tariffs apply to goods classified under HS codes 3907.61.00 and 3907.69.00, which include both virgin and recycled forms of PET. Since recycled PET does not have a separate classification, it now falls under the same tariff regime as virgin PET. All shipments entering the U.S. or withdrawn from bonded warehouses after 12:01 a.m. EDT on September 8 are subject to the new duties.

This move is part of a broader strategy to address what the administration has called a national emergency stemming from the U.S. trade deficit and nonreciprocal trade practices. The revised tariff framework aims to strengthen domestic supply chains, protect American industries, and encourage reshoring of manufacturing. The White House has also introduced a new annex for potential tariff adjustments tied to future trade agreements, signaling a more aggressive stance on trade negotiations.

The impact on Asian exporters has been immediate. Traders from India, Indonesia, Thailand, and Vietnam report disruptions, with some rerouting shipments to Europe to avoid the new costs. Indian-origin cargoes, in particular, may face tariffs as high as 50 percent. This comes at a time when U.S. domestic PET prices have hit a 15-month low, adding further pressure on foreign suppliers who must now absorb tariff costs to remain competitive.

Industry analysts expect the policy change to reshape global PET trade flows. U.S. buyers may increasingly turn to domestic sources or countries with preferential trade agreements, while Asian exporters seek alternative markets. The decision also aligns with concerns raised by domestic recycling advocates, who argue that unchecked imports of recycled plastics undermine investment in U.S.-based recycling infrastructure.

As the new tariffs take effect, stakeholders across the supply chain are bracing for volatility in pricing, sourcing, and long-term trade relationships. The full implications of this policy shift will likely unfold over the coming months, as global markets adjust to the new regulatory landscape.