Plastic Industry Rebounds Amid Global Trade Headwinds

The Plastics Industry Association (PLASTICS) released a report detailing its latest quarterly economic data. The association's Chief Economist, Dr. Perc Pineda, pointed out significant changes and emerging trends in the market in the "2025 Second Quarter Committee on Equipment Statistics (CES) Report."

In the context of continued uncertainty in global trade policies, the report reveals encouraging shipment growth compared to the previous quarter and the same period in 2024, indicating that the plastics manufacturing industry demonstrates resilience even amidst broader economic headwinds.

Shipment volume stops declining and starts to rebound.

Pineda stated that the shipment volume stopped declining in the second quarter.

"In fact, compared to the same period in the first half of 2024, shipments increased by 3.5% in the first half of 2025," he explained. "Compared to the first quarter, the plastics industry appears to have better coped with the ongoing trade and tariff challenges across the entire value chain in the second quarter."

Despite these positive indicators across the entire plastics industry, the continued high tariff rates cast a shadow over long-term planning and international competitiveness, posing challenges for manufacturers to optimize supply chains and maintain profitability in an increasingly complex global market.

"If the primary goal is to enhance the competitiveness of American manufacturing—which the plastics industry fully supports—then in the short term, the industry should be able to import production inputs and equipment that are no longer produced in the United States at lower tariff rates," Pineda added.

Mixed Prospects in Machinery Trade

U.S. plastics machinery trade sent mixed signals in the second quarter: imports fell 7.9% quarter-on-quarter, but still maintained a 1.9% increase compared to the same period last year. Meanwhile, total exports edged up 0.4% quarter-on-quarter, but saw a larger year-on-year decline of 4.3%.

The latest Consumer Electronics Show (CES) member survey reveals a shift in industry sentiment: 58% of respondents expect market conditions to remain stable or improve over the next 12 months—a slight decline from the 62% outlook reported last quarter. Despite cautious forecasts, encouraging signs have emerged in immediate business activity: the proportion of members reporting stable or improved inquiry activity surged significantly from 65% to 76%.

"Preliminary estimates of the actual GDP in the United States show a 3.0% growth in the second quarter, rebounding from a 0.5% decline in the previous quarter," said Pineda. "This growth was mainly driven by a significant decrease in imports, which are subtracted in the calculation of domestic output."

Looking ahead, multiple economic indicators suggest that the plastics industry will have a more favorable outlook when facing any potential challenges.

Pineda emphasized that household spending has shown strong growth across all categories—durable goods, nondurable goods, and services—which signals tremendous expansion opportunities for the domestic plastics manufacturing industry, especially as import volumes continue to decline.