New Trump tariffs worry North American chemical industries

High duties on imports from Canada, Mexico and China raise problems for international supply chains.

The Alliance for Chemical Distribution is ‘concerned about the overall consequences increased tariffs – and retaliatory tariffs – will have on […] the wide range of US manufacturing sectors supported by the chemical distribution industry, and American consumers as a whole

The American Chemistry Council, which represents US chemical companies, pointed out that chemical products made in the US often cross the Canadian and Mexican borders several times, adding value and supporting other US manufacturing supply chains. ‘A 25% duty added each time such products cross the border will make domestic production of these products more expensive, likely increasing prices for consumers, especially when our producers are facing increasing competition and unfair trading practices from other countries

The American Coatings Association (ACA) also warned that the tariffs will introduce ‘disruptions and increased costs’ into the production of essential consumer products, including medical devices and pharmaceuticals, food production equipment and grocery items.

US President Donald Trump’s 25% tariffs on imported steel and aluminium have resulted in major repercussions for supply chains worldwide.

While the policy aims to boost domestic manufacturing, its impact on global supply chains is a growing concern. The US remains heavily dependent on imported aluminium, particularly from Canada and Mexico and, with this tariff in place, costs are expected to rise across industries.

For US manufacturers reliant on aluminium, the tariffs could cause supply shortages, higher production costs, and reduced competitiveness. A slowdown in infrastructure projects is also likely, affecting everything from public transport upgrades to commercial construction.

Reference:

New Trump tariffs worry North American chemical industries | Business | Chemistry World

Trump’s Steel and Aluminium Tariffs Shake Up Supply Chains | Supply Chain Magazine