A quarterly newsletter on Plastics, Logistics, and Flame Retardants
⚓US Supreme Court Ruling on Tariffs
⚓ATO Update
⚓Logistic Disruptions Caused by Conflict
February 20th the Fentanyl Tariffs and Reciprocal Tariffs of 2025 were struck down as unconstitutional by the US Supreme Court [1]. This means that imported goods no longer pay the 20-55% tariffs enacted by President Trump in 2025 by executive order.
President Trump immediately signed an executive order to increase global tariffs by 10-15%. This is done through the Section 122 of the 1974 Trade Act, which allows the President to impose the tariffs for a period of 150 days [2]. It is unclear if the tariffs can be extended for another 150 days indefinitely.
The 1977 International Emergency Economic Powers Act (IEEPA) was used to enact the Fentanyl and Reciprocal tariffs. President Trump argues that the economic advantage that the US has given to China and the unfair practices by China constitute a national emergency.
The US collected up to $200 billion in tariff revenues paid my US importers. FedEx filed a suite for the full amount of refunds for their imports. it is unclear if refunds will be given, with Scott Bessent, President Trumps Secretary of Treasury, stating that it may not be feasible.
Ready to explore what’s next? Contact us here to learn more about how Ocean Chemical can help you navigate the tariffs! Let’s discover together how the world’s latest breakthroughs can create new opportunities for your business.
[1] – SCOTUS Blog
[2] – White House Executive Order for new tariffs
[3] – BBC on Tariff Refunds
In November 2025, China began to reexport dual use materials such as gallium, germanium, and antimony to the US and western allies, who had since April of 2024 been restricted for such mineral exports. The move comes after a year of having restricted the export of these materials, causing the market for antimony trioxide in particular to go exponential, with some prices hitting as high as $30/lb.
China has also reduced the information requirements for receiving the exports – previously an onerous process of redundant buyer information and multiple promises of non military use. Now the process for ATO masterbatches is 1-2 forms and takes 1-3 weeks to begin exporting.
This move marks a reduction in the trade tensions between the US and China. President Trump and President Xi are scheduled to meet in Beijing in early April this year to further discuss the trade ties of the two nations.
Meanwhile the price of antimony trioxide has cratered, with master batches in the $10 range.
While competitors struggle with ATO price volatility, smart manufacturers are working with Ocean Chemical. We are delivering immediate cost relief, access, supply chain security, and simplified formulations.
Contact Ocean Chemical today for technical support and customized strategies that optimize formulations while reducing costs and enhancing performance of your ATO.
[1] – President XI and President Trump set to meet in April
The actions by Israel and the US in Iran and Iran’s response has caused massive disruption in global trade. The straight of Hormuz is 24 miles wide at its smallest width, short enough to swim across, and sees 25% of the worlds oil, and 20% of the worlds liquified natural gas (LNG) pass through. It is a strategic economic and trade choke point that has been threatened.
150 ships are stranded in the Persian Gulf, afraid to cross the straight for fear of being targeted by Iran. As a result, oil futures on a barrel of oil shot up briefly to $115 per barrel from $70 per barrel before the conflict, and fell to $90 a barrel. The price crashed to $80 March 11th, and March 12th has seen the price rocket above $100 per barrel [1].
The high volatility is due to the uncertainty of the conflict, and the uncertainty of a potential end. With no clear timeline, the end to this conflict rests with one man – President Trump. And that may change from day to day. The longer the conflict goes the more long term disruption will be felt in oil and agricultural fertilizers and reverberate in the global economy.
Bromine prices in Asia have soared in recent weeks due to the conflict going on in Iran. The disruption in the bromine production comes from a stoppage of raw material exports from the dead sea facilities controlled by Jordan and Israel. Bromine prices have climbed 20% as a result.
With this conflict and continued uncertainty about future trade, businesses may want to consider adjusting their import strategies accordingly. Our team stands ready to help with your supply needs, including our competitively priced flame retardants. Contact us here.
[1] – Oil Prices
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