Statement from the Chemical Industry Association of Canada on the Implementation of Tariffs

February 04, 2025

The Chemistry Industry Association of Canada (CIAC) expresses deep concern following the implementation of tariffs on imports from Canada by the United States (U.S.). This announcement poses immediate challenges to the economies of both Canada and the U.S, which have long benefited from the seamless trade relationship between our two nations.  Tariffs are taxes. Taxes on industry and consumers buying business inputs and consumer goods. Retaliatory tariffs will have a magnifying effect.

With $115 billion CAD in trade between Canada and the U.S., the chemistry and plastics sectors exemplify cross-border collaboration and a mutually beneficial trade relationship. Canada is the U.S.’s largest customer for manufactured goods. Canada’s chemistry and plastics sector provide key inputs that support a thriving and growing U.S. manufacturing sector.

“The impact of these tariffs is not limited to the shop floor or the boardroom. Costs will rise and consumers and businesses alike will shoulder the weight of these tariffs at a time when cost-of-living is already high in both countries,” said Greg Moffat, CIAC President and CEO. “This approach threatens the competitive edge that North America has enjoyed in the global market, hindering our ability to innovate and deliver solutions for the long-term viability of both the American and Canadian economies.”

As an industry that has supported millions of jobs and facilitated the flow of goods across borders, we urge both Canadian and U.S. policymakers to seek a resolution to this important issue. The effect of these newly implemented tariffs will lead to a weakened economy, harming both Canadian and American workers and families.

It is vital that we rekindle the spirit of cooperation that has defined our trade relationship for decades. A strong and collaborative chemical and plastics sector is essential for ensuring long-term economic prosperity and sustainability for both nations. We ask that both parties get to the negotiating table to work towards restoring a balanced trade relationship that benefits all.