Episode 1327: Think Tank: How a trade war would hurt the chemical industry everywhere, signal the end of a globalised economy

Chemical companies all over the world will suffer if the new US tariffs trigger a full-blown trade war.

-          Tariffs will be bad news for the US and for the global economy

-          Europe polymers producers might get short-term relief if EU imposes tariffs on US polyethylene (PE)

-          US tariffs means China may now target other countries

-          Chemical industry will become more regional

-          If US becomes more isolated China could move closer to Europe, form new trading bloc

-          Europe’s chemical industry has its back against the wall

-          3.4% of European chemicals capacity has shut down 

-          EU attitude to energy pricing has reversed – they now want to reduce them

-          Chemical industry now has unprecedented access to high level Commissioners

-          Energy demand will soar – AI will use as much as chemicals

-          Electricity production needs to double to full electrify chemicals, other sectors

-          Survival of EU as a free trade zone is important

-          Chemicals CEOs can seize an opportunity if competitors close

In this Think Tank podcast, ICIS journalist Will Beacham interviews Cefic director general Marco Mensink, John Richardson from the ICIS market development team and Paul Hodges, chairman of New Normal Consulting.