China has announced anti-dumping duties of up to 74.9% on imports of polyoxymethylene (POM) copolymers from the US, European Union, Japan, and Taiwan amid ongoing trade tensions.

POM copolymers are engineering plastics used in various sectors, including automotive, electronics, and medical equipment.

The Chinese Ministry of Commerce concluded an investigation into alleged dumping of these materials. This investigation began in May 2024 and resulted in preliminary anti-dumping measures implemented in January, which required deposits on imports.

The highest duties apply to imports from the US, set at 74.9%. European shipments will incur tariffs of 34.5%, while Japan will face a rate of 35.5%.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Targeted tariff approach reflects strategic rather than blanket retaliation

China’s highly differentiated tariff structure on POM copolymers reveals a calculated strategy rather than simple retaliation.

The U.S. faces the highest duties at 74.9%, while the EU (34.5%), Japan (35.5%), and Taiwan (32.6%) receive substantially lower rates 1.

Even more telling is China’s company-specific approach, with Taiwan’s Formosa Plastics receiving just 4% tariffs and Polyplastics Taiwan only 3.8%, compared to their country’s general rate of 32.6% 2.

This nuanced approach enables China to exert maximum pressure on the US while preserving strategic supply relationships with specific companies, demonstrating how modern trade conflicts are increasingly surgical rather than comprehensive.

The selective duty implementation suggests China is carefully balancing political messaging with practical economic considerations, avoiding disruption to critical supply chains where alternatives might be limited.

2️⃣ Strategic timing signals leverage in ongoing negotiations

China’s announcement comes at a critical juncture in trade relations, just as both sides reported agreeing to a 90-day tariff reduction truce 3.

The timing of finalizing this investigation—launched in May 2024 and concluding now—appears deliberately positioned to create negotiating leverage as the US and China discuss broader trade terms.