US Plastic Industry Expected to Cut Jobs and Production This Year

Recently, the Plastics Industry Association (PLASTICS) in the United States stated that due to the uncertainty of tariffs and trade policies suppressing manufacturing activity, employment in the U.S. plastics industry is expected to decrease by 1.1% by 2025, and product shipments are projected to decline by 0.5%.

Percy Pineda, the chief economist of the association, pointed out: "Overall, the core reason for the hindrance in manufacturing growth is the uncertainty brought about by high tariffs and the unpredictability of new and revised tariff policies. The unclear tariff outlook is dragging down the market adjustment pace of the entire manufacturing supply chain, including the plastics industry."

Pineda believes that the trade disputes causing tariff issues will not remain unresolved for a long time. The global trade environment cannot bear the pressure of continued high costs for steel and aluminum, which are key raw materials in many manufacturing sectors, including the plastics industry. The plastics industry is also facing pressure from equipment imports. Currently, the United States has expanded the scope of Section 232 tariffs, and imported plastic machinery and molds in the plastics industry have also been included in the tax list.

The situation is even more severe, as tariff pressures may escalate further. Matt Seaholm, CEO of PLASTICS, stated that the U.S. Department of Commerce has restarted the process for including categories under Section 232 tariffs, which may involve more products containing steel and aluminum in the future. Seaholm pointed out, "This administration has prioritized this issue, and the government has indicated that it does not wish to establish any tariff exemption categories, a stance that has led to widespread discontent among the entire manufacturing sector in the U.S."

PLASTICS argued that the plastics industry itself and the equipment produced by the industry are used to manufacture other industrial products. Therefore, plastic machinery and related materials imported into the United States should be regarded as "essential inputs needed for manufacturing" rather than ordinary taxable goods. Westholm emphasized, "We support building factories in the United States, and we also hope to produce the raw materials, products, and equipment needed for these factories."

For 2026, Pineda anticipates that the United States will engage in more trade negotiations, which are expected to eliminate the current uncertainties hampering manufacturing. Despite the challenges posed by trade uncertainties, Pineda remains optimistic about the prospects for global economic growth. In 2026, the lagging effects of tariffs will still limit the growth of plastic product shipments, with an expected increase of only 1.3%. Employment in the industry is expected to resume growth, with a projected increase of 0.5%. From a policy perspective, one of the goals of the current U.S. tariff regime is to encourage domestic companies to replace imports with domestic products and raw materials. The report summary indicates that if industry reshoring and import substitution can be successfully advanced, the U.S. plastics manufacturing industry will directly benefit.