Paint manufacturers against anti-dumping duties on titanium dioxide from China

Titanium dioxide as a white pigment is an important raw material for coatings, paints and printing inks and accounts for up to 40% of raw material costs and 20% of the cost of the end product. Such punitive tariffs therefore threaten the long-term viability of the EU paint industry, which has an annual turnover of €33 billion and more than 150,000 jobs. In July 2024, the European Commission imposed provisional tariffs on titanium dioxide imports from China for six months. The EU Commission accuses the Chinese government of artificially depressing prices through subsidies and thereby distorting competition. The member states will shortly be voting on the European Commission's latest proposal to introduce the tariffs permanently.

Paint manufacturers warn of negative effects on the industry

"If the majority of member states confirm the Commission's proposal, this will have a direct impact on the paint industry, one of the largest consumers of TiO2," says Christel Davidson, Managing Director of CEPE. "The Commission is showing a short-term approach to EU competitiveness here: we fear that the impact of these tariffs on the paint sector - particularly on small businesses and downstream industries such as construction - will outweigh any short-term relief for European TiO2 producers. European titanium dioxide producers are currently unable to meet the demand from the EU industry, making imports from China almost impossible to replace, Davidson continues. In any case, TiO2 from China will become considerably more expensive. "One consequence is that paint manufacturers in the EU will be at a competitive disadvantage compared to manufacturers from other parts of the world who can continue to source TiO2 from China at lower prices and sell their paints on the EU market."

Punitive tariffs on titanium dioxide jeopardize exports and competitiveness

CEPE is also concerned about the wider implications for EU manufacturers exporting their products outside Europe: The increase in production costs will affect the competitiveness of these companies on the global market, reducing exports and jeopardizing the market position of European manufacturers. "Investment in the EU paint sector is expected to become less attractive overall, which will have a direct impact on European TiO2 suppliers," says Davidson. "This would be an unfortunate outcome for a measure that is supposed to protect European companies from unfair foreign competition. We therefore hope that the Member States will analyze the situation carefully and oppose the introduction of permanent tariffs at their meeting next week." CEPE, the European Coatings, Printing Inks and Artists' Colors Industry Association, represents the interests of coatings, printing inks and artists' colors manufacturers in Europe. The Association of the German Paint and Printing Ink Industry (VdL) is a member of CEPE and represents over 200 mostly medium-sized paint, ink and printing ink manufacturers in Germany.