The US has imposed anti-dumping and anti-subsidy tariffs on Chinese and Indian polyester textured yarn exporters. The justification is that exporters from China and India have dumped polyester textured yarn in the US market at margins ranging from 76.07 per cent to 77.15 per cent and 17.62 per cent to 47.51 per cent. The decision was taken after companies in the US, Nan Ya Plastics and Unifi, brought a petition against Chinese and Indian exporters.

With heavy tariffs now imposed on Chinese polyester textured yarn, Taiwanese companies see a chance to enter the US market. Though they are not sure whether the ruling will result in any benefits, they think it will serve as a bargaining chip for the US in its negotiations with China as the two countries seek to resolve their trade disputes. Chinese firms that face heavy tariffs in the US are likely to sell their products on the domestic market, which would tighten the competition for Taiwanese companies operating in China, including Nan Ya Plastics.

After the petition was filed with US authorities, polyester textured yarn exports from China and India to the US fell to 229 tons and 341 tons per month on an average, respectively, as of September of 2019 from 1,939 tons and 1,006 tons as of January 2018.