In August, the U.S. Department of Commerce expanded Section 232 tariffs on steel and aluminum, adding 407 tariff codes affecting consumer goods, transportation, energy, infrastructure, and, especially, the plastics value chain.
The U.S. plastics industry faces a challenging environment marked by economic volatility and uncertainty surrounding trade and tariff policies. This was warned by the Plastics Industry Association (PLASTICS) during the Size and Impact 2025 executive briefing.
At the meeting, Matt Seaholm, president and CEO of PLASTICS, and Perc Pineda, chief economist, highlighted that the Federal Reserve’s recent interest rate cuts could provide some relief to the industry. The first benchmark rate reduction since December reflects a potential boost for plastics manufacturers and key sectors such as construction.
“This will be positive for the economy, and perhaps in 2026 there will be more clarity on trade and tariffs,” Pineda said. “This is where the entire business community and the manufacturing sector are looking for guidance about the future.”
Lower interest rates could especially benefit key markets like construction, according to Pineda, who projected “a solid year for the plastics industry” with relatively calm regulatory and legislative conditions.
Tariffs: An Obstacle to Competitiveness
Although the rate reduction is good news, tariff policies continue to be a drag on the sector. Pineda warned that the tariffs implemented since the Trump administration are not sustainable in the long term.
In August, the U.S. Department of Commerce expanded Section 232 tariffs on steel and aluminum, adding 407 tariff codes affecting consumer goods, transportation, energy, infrastructure, and, especially, the plastics value chain.
Import dependence also exacerbates the problem: the plastics industry imports around 75% of its machinery, increasing its vulnerability to tariffs. According to Pineda, “the global trade environment cannot support a continued rise in steel and aluminum costs.”
New Regulations: Extended Producer Responsibility
During his remarks, Seaholm emphasized the importance of extended producer responsibility (EPR), which is already in place in several states.
“These laws are already going into effect in several states, and we are seeing the imposition of substantial tariffs,” he stated. “If implemented, there will be a substantial investment in recycling infrastructure in the short term, which will translate into very positive results for recycling rates in those states.”
However, Seaholm acknowledged the numerous challenges facing the plastics industry and the economy in general.
“Uncertainty is always one of the biggest impediments to economic investment growth,” he stated, citing concerns about “interest rates, government spending, new regulations, consumer strength, confidence in plastics, and, of course, tariffs and trade policy.”
Plastics’ Economic Impact
The executive also noted that the plastics industry continues to feel financial pressure due to the vagaries of U.S. trade policies, which he expects to present only short-term challenges.
Despite these obstacles, Seaholm emphasized the industry’s resilience, driven by the value of plastics and its impact on society. The PLASTICS report revealed continued growth, with total shipments reaching $551 billion by 2024.
“Our economic impact is considerable,” Seaholm concluded. “Including our suppliers, the plastics workforce reached more than 1.7 million people nationwide. We remain the eighth largest manufacturing industry in the United States.