US slaps full tariffs on PET and rPET imports, hitting Asian markets

In a significant policy shift, the #US has announced that imports of polyethylene terephthalate and recycled PET will now be subject to full tariffs, effective from Sept. 8, 2025.

This decision has raised significant concerns within the Southeast Asian and South Asian rPET markets, which had previously benefited from tariff exemptions. The recycled PET material does not hold a separate HS code and shares the same HS code as the virgin counterpart.

According to a document released by the White House Sept. 5, HS codes 3907.61.00 and 3907.69.00, which pertain to various forms of #PET, have been added to Annexure 1. This means that goods entered for consumption or withdrawn from warehouses after 12:01 am EDT, three days following the announcement, will incur these new tariffs. Traders and exporters are already expressing concern that the move will significantly alter trade dynamics, particularly for Indian exporters who have relied on local recyclers to meet US demand.

The announcement comes as a surprise to many in the #rPET/PET trading community, who had expected these materials to continue to be categorized under Annexure II, which did not impose tariffs. As a result, traders from India, Indonesia, Thailand and Vietnam are now grappling with the implications. One Indian trader reported rerouting a cargo already en route to the US to Europe, while others predict that demand for rPET from Southeast Asia will decline. The impact is particularly pronounced for Indian-origin cargoes, which may face tariffs as high as 50%.

Adding to the pressure, US PET prices have dropped significantly in recent months, with the ex-works price for recycled PET clear flakes in Los Angeles assessed at a 15-month low of 50 cents/lb as of Sept. 5. Meanwhile, rPET FOB India clear #bottlegradeflakes were valued at $850/mt FOB India on Sept. 8.

source : S&P Global