Introduction: from the aspects of waste paper import, recycled fiber pulp import, finished paper demand, market mentality and so on, the impact of the US discussion on Abolishing the tariff imposed on China on the domestic waste paper market is positive and positive, which is conducive to boosting confidence and timely recovery of the domestic waste paper Market.

Inflationary pressure in the US has increased, and discussions are under way to abolish the imposition of tariffs on imports from China

Xinhua news agency, Washington, May 10, US President Biden said on the 10th that the US government is discussing whether to cancel the tariffs imposed on China during the trump administration, but has not yet made a decision on this. The U.S. Trade Representative Office announced on May 3 that the two actions of imposing tariffs on Chinese goods exported to the United States four years ago based on the results of the so-called “301 investigation” will end on July 6 and August 23 this year, respectively. From now on, the office starts the legal review procedure for relevant actions.

In the near and far future, the cancellation of tariffs imposed by the United States on China may have the following impacts on the waste paper market.

The waste paper trade between China and the United States has been cleared

From January 1, 2021, the amount of imported waste paper from the United States has been reduced to zero, that is, the policy of prohibiting the import of waste paper has been fully implemented.

Before 2021, American waste paper is an important component of China’s imported waste paper. However, since the impurities and sundries contained in American waste paper have already caused harm to China’s environment, the waste paper trade between China and the United States will be cleared from January 1, 2021. It can be seen that if the United States cancels the imposition of tariffs on imported goods to China in the later period, it will have no direct impact on the domestic waste paper market.

China imports recycled fiber pulp, among which American waste paper is an important raw material for recycled fiber pulp

From a qualitative point of view, if the tariff increase is cancelled, the quantity of China’s goods exported to the United States may increase, the domestic commodity supply in the United States may increase and the price may fall. As a result, domestic consumption in the United States will increase, which is conducive to the growth of waste paper quantity and price decline in the United States. The change in the volume and price of waste paper in the United States will be transmitted to the market of recycled fiber pulp, which will help the price of recycled fiber pulp decline, and then push up the cost performance of China’s imported recycled fiber pulp, and in the opposite direction, pull up the import volume of recycled fiber pulp, make up for the domestic supply gap of waste paper, and expand the domestic closed cycle flow of waste paper.

The growth of export trade drives the consumption of finished paper to rise, and then helps the consumption of waste paper to increase

From an intuitive point of view, if the tariff increase is cancelled, the quantity of goods exported from China to the United States may increase, which will drive the increase of domestic demand for paper packaging, facilitate the production and sales of finished base paper of paper mills, and continue to upward transmit or promote the rise of domestic demand for waste paper. If the supply potential of waste paper cannot be deepened at that time, the price of waste paper may rise.

Domestic waste paper market confidence will be greatly restored

For the purpose of controlling domestic inflation in the United States, the United States discussed the abolition of tariff increases on China, which is just the irrational evidence of the trade dispute initiated by the United States four years ago. The essence of Sino US trade is mutual benefit and win-win cooperation. If the United States finally cancels the imposition of tariffs on China, it will undoubtedly inject a positive impact into the global economy and promote the rebound and expansion of Sino US trade, which will certainly provide effective support for the global economic recovery. As a member of the global economy, the waste paper market will also benefit greatly, and the confidence of the domestic waste paper market will be greatly restored.

In general, the cancellation of the tariff increase by the United States has a positive and positive impact on the domestic waste paper market, which is conducive to boosting confidence and timely recovery of the domestic waste paper market.