Why does the American Chemistry Council (ACC) oppose the proposed Union Pacific–Norfolk Southern railroad merger?

The ACC opposes the proposed Union Pacific–Norfolk Southern merger because it views the deal as 'not in the industry’s interest,' warning it could become the largest railroad merger in history and would likely reduce competition, lower service quality, and increase freight rates—directly threatening the safe, reliable, and cost-effective transport of bulk chemicals and basic feedstocks. ACC has publicly opposed the merger, coordinated a letter signed by leaders of 40 member companies, and is actively engaging with the Surface Transportation Board—including submitting evidence and participating in hearings—to safeguard fair, efficient, and competitive rail service, which it deems essential to maintaining U.S. chemical industry cost advantages and supply chain resilience.

What is the ACC's 'value chain approach' to trade policy, and why is it significant for the U.S. chemical industry?

The ACC advocates a 'value chain approach' to implementing tariffs and trade barriers—focusing on specific chemical value chains like polyester and chlor-alkali—to precisely identify U.S. production segments at risk while ensuring continued access to critical imported raw materials. This method avoids broad-based tariffs that could inadvertently harm downstream industries, thus balancing domestic manufacturing protection with supply chain continuity. ACC considers this approach vital for addressing global chemical overcapacity without disrupting key inputs, and is working with Canada, Mexico, and the EU to align positions and reduce trade diversion risks—citing the USMCA chemicals annex as a model for future trade actions under the stable, predictable framework of the Trade Act of 1974.

US Chemical Industry Prioritizes Trade Policy, TSCA Reform, and Rail Logistics

Jun 8, 2026

At its annual meeting, the American Chemistry Council prioritized trade policy reform, TSCA legislative updates to clear chemical approval backlogs, and opposing rail mergers to protect supply chain resilience.

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US Chemical Industry Prioritizes Trade Policy, TSCA Reform, and Rail Logistics

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