Need to Know

• CCA says new Section 338 tariffs affecting roughly $28 billion of Canadian goods add to existing trade pressures on the CASE sector.
• Canada’s proposed dollar-for-dollar countertariffs are scheduled to take effect Sept. 8.
• The association urged both governments to return to negotiations, warning that smaller and mid-sized businesses are especially exposed.

CCA issued the following statement:

“The Canadian Coatings Association is deeply concerned by the breakdown of trade negotiations between Canada and the United States, and by the new Section 338 tariffs that have now gone into effect, impacting roughly $28 billion of Canadian goods. These are layered on top of existing sectoral tariffs that have already significantly disrupted the coatings, adhesives, sealants and elastomers (CASE) sector for over a year. Currently, Canada’s proposed dollar-for-dollar counter-tariffs are scheduled to take effect on Tuesday, September 8, following the Labour Day long weekend.

Canada’s CASE sector relies on the free flow of goods in both directions across the border. There is no combination of tariffs and counter-tariffs that works for an industry built on integrated, cross-border supply chains. These measures raise costs, disrupt production, and undermine the innovation, investment and competitiveness of CASE companies in both Canada and the United States. Smaller and mid-sized businesses, which form the backbone of our sector, are especially exposed.

Both governments have a narrow but real window to de-escalate and return to the negotiating table before further damage is done to businesses and workers on both sides of the border. The CCA will continue to monitor this evolving situation, and will remain closely engaged with government and industry partners as we advocate for policies that protect our members’ competitiveness. The CASE sector contributes over $19 billion annually to the Canadian economy and supports more than 130,000 highly skilled jobs; a durable resolution is required to protect this contribution while providing our members with the predictability needed to plan with confidence.”

The statement follows an earlier CCA response issued while implementation of the tariffs was temporarily paused. PCI previously reported on that warning and on the coatings-related product classifications included in the U.S. tariff schedules.

CCA’s statement highlights the cost, production and competitiveness risks that tariffs and countertariffs can create across integrated North American coatings and CASE supply chains. Follow PCI’s regulations coverage for policy developments affecting coatings manufacturers and suppliers.