The US PVC Market Faces Dual Obstacles of Tariffs and Economy
2025-4-1
Affected by the Trump administration¡äs tariff policies and the sluggish US economy, the US PVC market is facing severe challenges. The report predicts that the growth rate of the domestic PVC market in the United States will only be 1% to 3% by 2025, with particularly weak performance in the housing and construction sectors, and the export market will also be impacted by tariff policies.
The report points out that the domestic PVC market in the United States performed steadily in 2024, but with the production of new capacity in the fourth quarter, the market has begun to experience oversupply. The expansion of production capacity combined with high operating rates has led to high PVC inventory levels at the beginning of 2025. At the same time, the main end market for PVC, the US real estate market, is facing dual pressures of high housing prices and high borrowing costs.
In terms of exports, the US PVC market faces greater challenges. The Trump administration¡äs proposed 25% tariff on Mexico and Canada, once implemented, will severely impact US PVC exports. These two countries are important export markets for PVC from the United States, as their processors process imported PVC and sell it back to the United States for use in medical, construction, automotive, and industrial fields. The tariff policy will increase the import cost of these products, thereby suppressing the demand for PVC in the United States. In addition, existing and potential tariff threats from major trading partners such as India, Canada, Mexico, Brazil, and the European Union have also cast a shadow over US PVC exports.
It is worth noting that US PVC producers currently need to export more than one-third of their products to maintain an 80% operating rate. Against the backdrop of oversupply and rising trade protectionism, it has become more difficult to achieve this goal.
Latin America, as the main export market for PVC in the United States, also faces challenges. Regional demand differentiation, economic pressure, and potential tariff policies are reshaping the market landscape, affecting supply and demand relationships. The Mexican market is particularly crucial, as the new tariff policy is expected to increase the export costs of its downstream PVC industry to the United States, thereby weakening the competitiveness of American PVC and potentially leading to a decrease in Mexico¡äs demand for American PVC.
The report points out that the domestic PVC market in the United States performed steadily in 2024, but with the production of new capacity in the fourth quarter, the market has begun to experience oversupply. The expansion of production capacity combined with high operating rates has led to high PVC inventory levels at the beginning of 2025. At the same time, the main end market for PVC, the US real estate market, is facing dual pressures of high housing prices and high borrowing costs.
In terms of exports, the US PVC market faces greater challenges. The Trump administration¡äs proposed 25% tariff on Mexico and Canada, once implemented, will severely impact US PVC exports. These two countries are important export markets for PVC from the United States, as their processors process imported PVC and sell it back to the United States for use in medical, construction, automotive, and industrial fields. The tariff policy will increase the import cost of these products, thereby suppressing the demand for PVC in the United States. In addition, existing and potential tariff threats from major trading partners such as India, Canada, Mexico, Brazil, and the European Union have also cast a shadow over US PVC exports.
It is worth noting that US PVC producers currently need to export more than one-third of their products to maintain an 80% operating rate. Against the backdrop of oversupply and rising trade protectionism, it has become more difficult to achieve this goal.
Latin America, as the main export market for PVC in the United States, also faces challenges. Regional demand differentiation, economic pressure, and potential tariff policies are reshaping the market landscape, affecting supply and demand relationships. The Mexican market is particularly crucial, as the new tariff policy is expected to increase the export costs of its downstream PVC industry to the United States, thereby weakening the competitiveness of American PVC and potentially leading to a decrease in Mexico¡äs demand for American PVC.