This content is sponsored by the American Chemistry Council.
The global trade environment has significantly changed in recent years, creating new challenges for many industries operating worldwide.
U.S. chemical manufacturers face a wide range of these economic pressures, in part because they are involved in virtually every aspect of American life.
They are on the cutting edge of all kinds of technology, whether it’s semiconductor chips powering AI or energy-saving materials for housing, sustaining and creating millions of U.S. jobs.
Chris Jahn, president and CEO of the American Chemistry Council, says various international forces threaten those jobs, though members of his organization are forging ahead.
Chemical companies have little choice, since they are at the beginning of the manufacturing supply chain.
“The current environment is pretty challenging,” Jahn said. “It’s distorted by non-market economies, creating a huge problem with overcapacity, particularly in our space, but that’s taking place in a number of segments of manufacturing industry.”
Jahn said China and its state-sponsored economy can create lots of problems.
“Basically, China has not grown as fast as they had planned, and what has happened then is they have flooded the market with more production,” he said. “And the result of that is a situation that undermines U.S. production and impacts our supply chains.”
Jahn said his organization is simply seeking “a level playing field.”
Navigating tariffs
Like many other business sectors, chemical companies are trying to deal with the soaring number of tariffs that have been imposed and renegotiated since President Donald Trump came into office.
Members of his organization don’t make everything in the U.S. and need to determine the costs of various materials overseas as they map out their business models.
“When you tariff those inputs that we no longer make here in the United States for products that we do make here in the United States, that just makes it more expensive,” Jan said. “And聽those costs get passed along to you and I as consumers.”
Jahn said his association supports efforts to address unfair trade practices, which the president has made a priority.
But it also seeks a “more nuanced and strategic approach to trade,” not one where everything is covered with a broad brush.
He pointed out that some other industries — such as steel or aluminum — may only have a handful of products.
But his members have thousands of products that require a different approach.
“So we’re looking for a partnership with the Trump administration, and very much appreciate them taking on these challenges, but we want to work with them to make sure they understand the nuances and the implications for our industry,” he said.
Trade with U.S. neighbors, Mexico and Canada
The U.S. is launching negotiations to renew the and Jahn said his organization has a keen interest in how they evolve.
Jahn said he is “cautiously optimistic” about the negotiations and believes the president wants to make it better.
“There’s certainly opportunities to do that, and we’re hopeful that we can continue to take advantage of that,” he said.
His group is holding an event in Washington in June with colleagues from Mexico and Canada to push for the new deal.
One of the council’s interests is the Chemical Sectoral Annex, which deals with various regulations and standards.
Jahn said it’s important to reach a new agreement with the U.S. neighbors, so they can push back on China when overcapacity issues arise.
He said he hopes that the new version of聽 USMCA can serve as a template for agreemements with other countries and regions of the world.
Future goals
Jahn said there are several other issues that could benefit his industry and consumers.
One of the issues before Congress is permitting reform, which affects everything from housing to energy production.
“I聽think that what’s maybe different about that than in the past is there truly is bipartisan recognition that our current permitting system does not work, and that it’s really hard to build things in this country,” he said. “And if we’re going to compete to win against China, we’ve got to change that.”
Jahn noted that with the increase of AI data centers, demand for energy will continue to grow.
He said the chemical industry’s version of permitting is the Toxic Substances Control Act (TSCA), which was last renewed a decade ago.
The latest version is scheduled to expire in September and requires congressional action.
Also of concern to his organization is a proposed merger between Union Pacific and Norfolk Southern railroads.
Jahn and opponents of the merger hope it won’t be approved, arguing it would drive up costs by lessening competition.
He is all for competition, when it takes place on a level playing field.
