Uncertainty more than tariffs highlighted as core geopolitical challenge for US chemicals: executives

This content is part of the WPC 2025 series, where we explore key themes from the 40th annual World Petrochemical Conference.

More than the tariffs that are expected to be imposed by the United States on imports, what has affected the chemical industry the most in the recent months are uncertainties about them, said Ilham Kadri, CEO of Syensqo SA, on March 18.

"The stop and go is the issue, the uncertainty. Not knowing the future, that's the problem."

The statement was made during the World Petrochemical Conference in Houston, where key executives discussed outlooks amid geopolitical uncertainties and changes in global trade.

Carlos Pascual, Senior Vice President of S&P Global, said that "we are in an era of instability," and what can determine market movements is the perception of where stability may exist.

Pascual cautioned that vulnerabilities right now lie within the supply chain, referencing how US industry was negatively impacted by supply chain disruptions during COVID-19.

Christopher Jahn, President and CEO of the American Chemistry Council, agreed that "the worst is not knowing." He noted that the US must ensure it is not collateral damage in a trade war, citing the chemical industry as worth $30 billion and plastics $20 billion.

Jahn additionally highlighted that tariffs have a strong potential to be pro-growth for the US chemical industry. He elaborated that in addition to protecting the manufacturing industry in the country, one of the main objectives of tariff adjustments should be to ensure that there is a functioning global trade.

"What we need is the regulatory certainty to make long-term decisions... competitiveness and innovation are key," said Jahn.

Uncertainties regarding the imposition of tariffs have affected various markets, such as the polymers.

In the US, demand for polyvinyl chloride for export is weak due to these uncertainties, according to market participants. "There is a lot of uncertainty in the export markets due to the ongoing situation with tariffs," a trader said on March 17.

Platts, part of S&P Global Commodity Insights, assessed US spot export PVC prices at $680/mt FAS Houston March 12, down $5 on the week, amid indications of limited market activity and weak demand.

"Nobody knows what will happen, and because of this, buyers are worried about what duties they will be exposed to in the future. It's very difficult to do business ex US right now," the same source added.

In the WPC conference, Ilham Kadri also mentioned demand as a current challenge. "We need to create demand. If there's no demand, there's no investments."

She said that most of the Syensqo customers are medium and small participants who are fighting several challenges, such as decarbonizing their operations, and still trying to increase their volumes.