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The USA government might levy 6,031 products that worth USD 200 billion from China as the public hearing period for the proposed third round of tariff come to an end on 6 September 2018. However, it is still unclear if the rate would be 10 per cent or 25 per cent.

The first two rounds of tariffs that came into effect on 6 July 2018 and 23 August 2018 covered 1102 products import from China, which the Chinese government has retaliated in kind. 

The effect of the first two rounds of the USA tariffs on the Chinese plastic end products exports are manageable, sources said. Data showed that in 2017, China produced slightly more than 75 million tons of plastics products and only approximately 15% or 11.7 million tons were exported, out of which, only 128,000 tons were to the USA. This number might surge to 284,000 tons would the third round of tariffs come into effect, according to data from the USITC.

Chinese buyers are in very deep concerns, despite the fact that US imports still hit the record high in July, causing a five-month high trade deficit. The politically sensitive goods trade deficit with China surged 10 per cent to a record $36.8 billion, according to CNBC report.

 “We are still able to manage the second round of the tariff as we have some agreement with customers in the USA. But the third round might really hurt our business,” a Chinese converter informed.

Other exporters become more conservative about the demand prospect in the final quarter of the year with a source said, "We might have to focus more on the domestic ground until the trade issue resolved. In the meantime, we are exploring the new export destinations," a flexible packaging manufacturer informed.