Tariff policies led to U.S. plastics trade contraction in 2025
The Plastics Industry Association (PLASTICS) reports that combined U.S. exports of plastic materials and resins, plastic products, machinery and molds declined 3.4 percent to $73.6 billion last year, according to preliminary data presented in the association’s annual trade blog.
PLASTICS cited changes in U.S. trade and tariff policy in 2025 that led to the contraction in plastics trade and significantly higher import duties.
The blog features a conversation between PLASTICS chief economist Perc Pineda and Shujiro Urata, an international trade expert, professor emeritus at Waseda University and chairman emeritus of the Research Institute of Economy, Trade and Industry (RIETI).
Imports fell 5.4 percent to $74 billion, and the U.S. plastics industry’s trade deficit narrowed by 78.5 percent. However, calculated duties on plastics imports surged 106.5 percent, to $7.8 billion.
“While the smaller trade deficit may appear positive on the surface, data suggests a more complex picture — one shaped by reduced trade flows, higher costs and shifting sourcing decisions rather [than] stronger underlying competitiveness,” Pineda said in the blog post.
The discussion between Pineda and Urata centered on the evolving U.S.-Japan trade relationship against a backdrop of higher tariffs, shifting supply chains and increased global economic uncertainty. Read the conversation here.
The U.S. has run a plastics trade deficit with Japan for many years, reflecting the longstanding integration of supply chains in machinery, molds, specialty plastics materials and manufactured plastic goods, the association said.
“The broader global trade environment has shifted, forcing countries to reassess commercial relationships as supply chains adapt to new tariffs, geopolitical risks and slower global growth,” Pineda said. “For the plastics industry, that means the U.S.-Japan trade relationship is no longer just about bilateral flows — it is increasingly about resilience, competitiveness and strategic alignment in a changing global economy.”