Trump's Proposed 25% Tariffs Threaten Canadian Chemical Industry's Growth

Dec. 2, 2024

Canada's chemical shipments forecast to grow 1%-4% in 2025, but U.S. tariffs and upcoming elections could disrupt industry projections.

Jonathan Katz

Canada’s chemical shipments are expected to grow 1%-4% in 2025, with slightly higher growth projected for the plastics industry, according to Independent Commodity Intelligence Services (ICIS).

The projections factor in expected global economic growth in 2025, but U.S. tariffs and Canada’s upcoming elections could pose risks for Canada’s chemical and plastics industries, reported ICIS, citing information from a Chemistry Industry Association of Canada (CIAC) webinar.

U.S. President-elect Donald Trump has proposed a 25% tariff on imports from Canada and Mexico. The United States is the largest market for Canada’s chemicals industry, ICIS noted.

But Canada’s chemical industry has faced tariffs from other countries recently, including China, India, South Korea and Brazil, David Cherniak, business and transportation policy manager for CIAC told ICIS.

Cherniak noted that Brazil plans to investigate polyethylene imports from Canada and the United States.

About the Author

Jonathan Katz | Executive Editor

Jonathan Katz, executive editor, brings nearly two decades of experience as a B2B journalist to Chemical Processing magazine. He has expertise on a wide range of industrial topics. Jon previously served as the managing editor for IndustryWeek magazine and, most recently, as a freelance writer specializing in content marketing for the manufacturing sector.

His knowledge areas include industrial safety, environmental compliance/sustainability, lean manufacturing/continuous improvement, Industry 4.0/automation and many other topics of interest to the Chemical Processing audience.

When he’s not working, Jon enjoys fishing, hiking and music, including a small but growing vinyl collection.

Jon resides in the Cleveland, Ohio, area.