The chemical industry is the focus of President Donald Trump’s new budget request for 2017.
The budget, which was released on Thursday, seeks to trim $1,095m in aid to the industry over five years, a decrease of over $1bn.
It also proposes $2.2bn for chemical production research and development, a $1m cut from the administration’s previous proposal and $400m in funding for the National Institutes of Health (NIH) to support the research and technology development of advanced cancer treatments.
The National Science Foundation (NSF) and the US National Institutes for Health (NINDS) will also receive an additional $1 billion over five to 10 years to help support their research.
The proposed cuts will come at a time when global demand for chemicals is already a major driver of the global economy, with chemical-intensive industries accounting for about half of global economic output.
A report published earlier this year by the International Monetary Fund said that “global demand for industrial chemicals has risen by over 100% since 2008”.
“The rise in global demand has led to a significant rise in the prices of many of the chemicals that the world uses every day, including chemicals used in cosmetics, pharmaceuticals, and pesticides,” the report said.
The chemical sector has seen rapid growth in the last few years as governments and companies have sought to exploit cheap natural resources such as carbon dioxide and methane to create cleaner, cleaner environments.
The US is currently the world leader in industrial chemicals, accounting for around 20% of global production.
But as the US has become a major player in the global chemical industry, its role has increasingly come under attack.
In April, the US Senate approved a sweeping $1tn plan to cut federal funding for research into the chemicals industry, which has been criticised by environmental groups.
The move, which is expected to pass the US House of Representatives on Friday, was prompted by the findings of the US Environmental Protection Agency (EPA) that the country has a “lack of adequate protection” of chemicals in its waters.