On February 1, 2025, President Trump announced new tariffs as part of his "America First Trade Policy." These include a 10% additional tariff on imports from China and a 25% tariff on goods from Canada and Mexico, with Canadian energy resources facing a lower 10% tariff. These tariffs are set to take effect on February 4, 2025. In response, China has vowed to take the matter to the World Trade Organization.

These developments could exacerbate the oversupply issue in China's chemical industry, as increased tariffs may reduce China's exports to the U.S., leading to a surplus of chemical products in the domestic market. This oversupply can result in decreased prices and profit margins for companies like Petronas Chemicals Group Berhad (PCHEM).