Statement of the American Coatings Association on Tariffs Imposed on Canada, Mexico and China

New tariffs imposed on the paint and coatings industry’s largest trading partners will introduce disruptions and increased costs into the production of essential consumer products, including medical devices and pharmaceuticals, food production equipment and grocery items, automobiles, and aerospace applications, among others. Average Americans and our domestic manufacturing industry will be negatively impacted by higher costs on countless products used daily as a result of new tariffs imposed on Canada, Mexico and China.

Canada and Mexico are the U.S. coatings industry’s largest trading partners, valued at $1.26 billion with $815 million, respectively; and China is the third largest trading partner, valued at $117 million. The coatings industry enjoys a positive trade surplus of $1.7 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 specialized “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 behavior.