American Coatings Association: statement on tariffs imposed on Canada, Mexico and China

The coatings industry relies on a stable global trade network to supply essential raw materials and maintain production efficiency. New tariffs imposed on Canada, Mexico, and China—key trading partners—are expected to drive up costs, disrupt supply chains, and impact industries that depend on coatings, from automotive to aerospace and medical applications. The American Coatings Association warns that these measures will not only challenge coatings manufacturers but also increase prices for countless consumer and industrial products.
Canada and Mexico are the U.S. coatings industry’s largest trading partners, valued at EUR 1.15 billion and EUR 744 million, respectively; and China is the third largest trading partner, valued at EUR 107 million. The coatings industry enjoys a positive trade surplus of EUR 1.55 billion, a strong sign that our industry is profiting from international trade.

The coatings industry overwhelmingly supported the United States-Canada-Mexico Agreement and has enjoyed the benefits that the certainty of a trade agreement provides. The production of automobiles – for which coatings play a pivotal role, from automotive paint, to specialised “lightweighting” coatings systems – is only one example of an industry that relies on a strong integrated North American supply chain as vehicle parts and inputs are routinely forwarded across borders to assembly facilities. Many of the raw materials for coatings formulas cannot be produced in the United States and originate in China. Consequently, there are limited options to procure these raw material inputs elsewhere. The American Coatings Association and the U.S. paint and coatings industry are prepared to assist the Trump Administration in seeking appropriate solutions to trade issues. Fair trade agreements provide level playing fields as well as certainty and predictability in commercial behaviour.

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