The first 100 days of a presidency are seen as a symbolic period often used to measure the early success of an administration. This time is often marked by a flurry of activity and the implementation of new policies. This may never have been more true than the first 100 days of President Trump’s second term. With all of the changes the last 100 days have brought, we are reflecting on the headwinds and tailwinds the chemical distribution industry is now facing and how that will impact the chemical distribution industry, our supply chain partners, and – ultimately – the American people.
Just one year ago, in April 2024, federal agencies broke records by publishing 66 final rules in a single month. More than half of those rules were economically significant, and the onslaught of regulations from a variety of agencies posed a very real threat to the chemical distribution industry’s ability to remain competitive and effectively supply our partners with essential products. One of President Trump’s earliest administrative actions was Executive Order 14219, “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative.” That opened the door for agencies to identify and rescind or change particularly onerous regulations.
ACD members are dedicated to not only complying with, but exceeding, the highest standards of safety and security, but many of the new rules introduced during the previous administration were ambiguous, overly-burdensome, and, frankly, unnecessary. In response to the administration’s deregulatory initiative, ACD sent letters to the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Labor (DOL) outlining five regulations promulgated by each of the departments that place significant costs and/or administrative burdens on our member companies.
And there are signs that the agencies are listening. We’re anticipating positive movement around EPA’s Risk Management Program (RMP) Final Rule, Toxic Substance Control Act Risk Evaluations, heavy-duty truck emissions, the 2024 independent contractor rule, and more. A recent industry win includes the removal of the RMP Public Data Tool from the EPA’s webpage. Despite the program’s impressive track record, changes were made under the previous administration that required chemical facilities to disclose sensitive facility information to the public. As part of this effort, EPA launched a public website where anyone could see the location, chemicals stored, and processes at thousands of sites across the U.S. For more than a year, ACD has been ringing the alarm bells with government officials about the potential consequences of this action. We are encouraged that agencies like the EPA and DOL are working with us to strengthen businesses large and small while alleviating needless burdens and financial strain.
On the flip side, some of the greatest headwinds blowing against the chemical distribution industry include this administration’s approach to tariffs. These new tariffs are meant to ensure a level playing field for American companies, and we support protecting domestic industries from discriminatory and predatory practices perpetuated by certain foreign producers. However, U.S. industries across the board are reeling from the impact of higher tariffs and the uncertainty that the tariff roller coaster and looming trade wars have brought.
Weappreciative that the administration recognized the critical role of chemicals in our daily lives and our economy and spared some chemicals from the brunt of new tariffs. However, we are urging the administration not to stop there. There are some trade programs, like the Generalized System of Preferences (GSP), that can help support the chemical supply chain through these tumultuous times. Since GSP’s expiration in 2020, the chemical distribution industry has paid an average of $242.3 million in tariffs annually, and reinstating this program would go a long way toward easing the impact of tariffs and subsequent price increases. It’s critical that our trade agenda leverage a commonsense approach that takes into account the impacts to industries and customers downstream.
As we continue to navigate these headwinds and tailwinds, we encourage our members to ensure their voices are being heard. Be sure to check in with our team and consider joining ACD’s Washington Fly-In, which is a great opportunity for our members to meet face-to-face with lawmakers and advocate for tangible changes for our industry. There is no better advocate for your business – and our industry – than you.
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