U.S. Treasury Secretary Threatens China: Buying Russian Oil May Lead to 500% Tariff! Styrene Falls to 5-Year Low, PVC Defies Trend to Turn Red

This nearly brutal tariff barrier, if implemented, will completely rewrite the trade rules between China and the United States. What is more alarming is that Trump has pressured European allies through diplomatic channels to coordinate actions in an attempt to place China's energy trade under an international siege.

This brewing trade storm is pushing the world's two major economies toward the brink of a new type of confrontation.

Besent disclosed after a closed-door meeting of the Senate Finance Committee that the proposal has received bipartisan support, far exceeding the 60-vote threshold needed to pass the legislation. According to the draft, the U.S. government will have the authority to impose tariffs of 300%-500% on any Chinese entities proven to import energy from Russia, covering crude oil, natural gas, and their derivative chemical products.

More notably, Trump has instructed U.S. ambassadors in several European countries to convey a clear message to allies: If the EU implements similar sanctions simultaneously, Washington will fully support the construction of an energy trade blockade against China. Observers see this move as the White House attempting to replicate the "Russian oil price cap coalition" experience, aiming to build a new encirclement against Sino-Russian energy cooperation.

At a White House press conference, when asked whether U.S.-China relations would escalate into a trade war, Trump declared with his signature tough tone, "We are now engaged in a trade war." This statement completely dismantled the ambiguous rhetoric of traditional diplomacy and blatantly brought the logic of Cold War-style confrontation to the forefront. Analysts point out that this move goes far beyond the realm of traditional trade friction—by cutting off the energy cooperation channel between China and Russia, the United States aims to weaken two major strategic rivals simultaneously and seize absolute dominance in the restructuring of the global energy order.

Data shows that China's crude oil imports from Russia surged by 42% year-on-year in 2023, surpassing 120 million tons. Western think tanks generally believe that Western sanctions on Russian energy have instead strengthened the energy ties between China and Russia. Now, the United States is attempting to sever this lifeline through secondary sanctions, which could trigger a reshuffling of the global energy market.

Latest Plastic Quotation on October 17

On Thursday, U.S. WTI crude oil futures closed at $56.99 per barrel, down 2.3%, marking the lowest price since February 2021, with a 19% decline over the past year. This week's decline has already surpassed the low point reached earlier this spring when Trump's series of tariff announcements sparked concerns about economic turmoil. This morning's opening continued to fall, with crude oil SC down 2.39% to 432.6 yuan/barrel, and PP, PE, and styrene futures remaining in the red, while PVC bucked the trend and turned positive. Since late September, styrene futures prices have been on a continuous downward trend, and as of yesterday's close, styrene futures prices hit a five-year low!

The instability in the market has caused the plastic spot market to show a downward trend even during the traditional peak season this year. Today, general-purpose materials and engineering materials have once again experienced a widespread decline.