Good News! European Union (EU) Cancels Some Tariffs and Suspends Carbon Tariff; Today Plastic Runs Strong with PA Up 200 at Peak

On January 8, Zhuangsu Shijie learned from Trade Night Navigation that the EU announced the release of two trade-friendly measures.

First, temporarily suspend the imposition of carbon tariffs on certain products.The EU Trade Commissioner stated that the European Commission will issue guidance allowing the temporary suspension of carbon tariffs on certain goods, with fertilizers (such as urea and ammonia) being the primary focus. This suspension will be retroactively effective from January 1, 2026, aiming to directly exempt the carbon tariff portion rather than simply reduce it. This pause is temporary and aims to address the EU agricultural crisis, such as farmers protesting high fertilizer prices.

The second is to suspend the collection of tariffs.The EU Trade Commissioner stated that the EU will suspend the duties on nitrogen fertilizers (HS code 3102, including urea).6.5% tariffAmmonium sulfide (HS code 2814)5.5% tariffThe suspension aims to further reduce import costs and ensure the measures are more effective.

This combination of measures aims to fully offset the additional costs brought by the European Union's Carbon Border Adjustment Mechanism (CBAM) and alleviate the pressure on fertilizer prices faced by European farmers. The EU relies on fertilizer imports, and this decision is seen as temporary relief for the agricultural sector.

The EU carbon tariff, officially known as the Carbon Border Adjustment Mechanism (CBAM), is a mechanism that will come into effect on January 1, 2026. It involves the European Union imposing a carbon tax on certain high-carbon-emission goods imported into the EU.

The official implementation phase will begin on January 1, 2026. The preceding transition period (2023-2025) primarily requires companies to submit emission data.Starting from 2026, carbon taxes need to be actually paid.。

Importers need to purchase CBAM certificates based on the carbon emissions of the products, and the certificate price is linked to the EU carbon market quota prices.The carbon price in the EU is relatively high (about 80-100 euros per ton), and companies need to bear additional costs, which squeezes their profit margins.。

Currently coveredSteel, aluminum, cement, fertilizer, electricity, hydrogenHigh-emission industries plan to expand to approximately 180 steel and aluminum-intensive downstream products starting from 2028, such as machinery equipment, automotive parts, home appliances, and more.

Section 2: Latest Plastic Price Quotations

According to statistics from Zhuansu Shijie on January 8, as of 11 a.m., the overall plastic market has shown a steady upward trend this morning, with ABS rising by a maximum of 30 yuan and PS market increasing by a maximum of 150 yuan. Most of the PVC market is in the green, with a general increase of 20-150 yuan, the highest rise being 150 yuan; The PA market is stable with some increases, the highest rise being 200 yuan.