The Trump administration is set to get the ball rolling on delivering what many expect will constitute a pro-business environment. A plethora of industries, including the chemical sector, have long advocated for permitting reform and reduced regulatory burdens. They may get that under Trump. However, the road ahead will come with an array of challenges, including a tough economy marred by inflation. The chemical industry supports nearly 25% of the US’ GDP, so how the Trump administration handles the economy will be a top priority for the the American Chemistry Council, says President and CEO Chris Jahn.
On top of a challenging economy, Jahn says that the industry faces a potential perception issue with the incoming Congress. But his message is clear: “We are not your grandfather’s chemical industry.” Especially when it comes to safety. Here, Jahn discusses expectations for pro-growth, science-based policies, the importance of streamlining permitting and chemical reviews and how regulatory reform can bolster innovation, enhance U.S. competitiveness and drive economic growth across the chemical industry and beyond.
The following interview has been edited for brevity and clarity:
SmartBrief: The second Trump administration looks motivated to roll back regulations. What is your expectation from the new Trump administration when it comes to its regulatory agenda? Are you calling for any specific changes?
Chris Jahn: President Trump has stated very plainly that his administration intends to “cut costly and burdensome regulations.” We certainly welcome this approach and believe it’s high time. Under the previous Administration our industry experienced a ninefold increase in the number of economically significant regulations. We anticipate this new Trump Administration provides us a tremendous opportunity to work with it and the 119th Congress to implement the kind of sensible, pro-growth, science/risk-based policies and regulations that enable growth for U.S. chemical production and that promote U.S. chemical manufacturing as the most innovative and competitive in the world.
Of note, we’ll look to the new Administration and Congress to improve timeliness of new chemical reviews to reduce market uncertainty and advance technology; modernize permitting policies to encourage U.S. innovation advancing key national priorities and U.S. competitiveness; and enact sensible tax policy for expanding U.S. business, creating jobs, and cutting costs for U.S. consumers. We will also advocate strongly to retain and bolster our sector’s trade surplus.
SB: It’s no secret that inflation has been an issue in recent years and the presidential election made it clear that most voters are looking for a more affordable America. Is there a role for your industry when it comes to this issue?
CJ: Our sector is key to a stronger, more affordable America. U.S. chemical manufacturers support more than 4 million jobs and 25% of U.S. GDP. National defense, energy independence, innovation and a resilient supply chain all depend on chemistry. U.S. chemical producers are the driving force for everyday products that businesses and families rely on and help manufacturers compete and win globally. Strengthening America’s supply chain by supporting the onshoring of manufacturing of innovative chemistries is key to American competitiveness. We will advocate for the Trump Administration and new Congress to instill smarter, pro-growth policies that will bolster more chemical production here at home and help ensure a stronger, more affordable America.
SB: The Administration has floated potential tax proposals that include lowering the corporate tax rate and extending tax cuts enacted during Trump’s first term. Does ACC believe this could enhance profitability for chemical companies?
CJ: Thanks to enactment of the Tax Cuts and Jobs Act, our nation is benefiting from a more internationally competitive tax system that is attracting investment, propelling innovation, and creating jobs in American chemistry. This new Trump Administration and makeup of the 119th Congress puts some real wind in our sails and boosts our ongoing advocacy effort to preserve and extend the pro-business reforms achieved during President Trump’s first term. And we continue to advocate for repeal of the Superfund Chemicals Excise Tax that was reimposed in 2021. This harmful and misguided tax results in increased costs on companies that produce the vast majority of U.S. manufactured goods, and those higher prices are passed along to American consumers.
SB: Are there ways your industry has evolved when it comes to safety and performance that the new Administration and Congress may find informative or even surprising?
CJ: There are likely members of the new Administration and new Congress that simply don’t know that we are not your grandfather’s chemical industry. We have a tremendous story to tell when it comes to safety and performance, and we’ll certainly be sharing it as much as possible on Capitol Hill and beyond. We are seeing that ACC member operations are safer and cleaner than ever before. Much of our evolution as an industry comes from over 35 years of industry’s foundational safety and environmental performance initiative, Responsible Care. A requirement of ACC membership, and implemented at nearly 1300 facilities across the U.S., Responsible Care establishes a common set of requirements for organizations across a range of disciplines, including environmental health, safety and security; and stakeholder engagement.
Responsible Care’s foundation has always been safety, and the program continues to have a momentous impact on industry safety performance. In fact, data shows that Responsible Care practitioners are 4x safer than the U.S. manufacturing sector, and 3x safer than the business of chemistry overall.
But it’s not just safety performance, our data shows meaningful progress across a suite of environmental performance metrics. Greenhouse gas intensity has been reduced by 14% since 2017 and SOx and NOx emissions have gone down 45%, and 19%, respectively. We are also actively working to increase our water stewardship, and manufacturing operations have reduced water consumption by 5% since 2017 – enough to fill nearly 20,000 Olympic sized swimming pools.
But we aren’t taking our foot off the gas, ACC is continuing to enhance performance and transparency under Responsible Care. Starting in 2024, ACC members began reporting additional air, climate and energy, and water metrics. And, we are undertaking a programmatic review in 2025 to drive continued success and address emerging needs and opportunities, like process safety, community engagement, and artificial intelligence.
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