In July 2024, the European Commission imposed provisional duties on titanium dioxide imports from China for six months. The European Commission accuses the Chinese government of artificially depressing prices through subsidies and thus distorting competition. The member states will shortly be voting on the European Commission's latest proposal to introduce the tariffs permanently.
Reject the EU Commission's proposal
The European Paint Manufacturers' Association (CEPE) is therefore calling on the EU member states to reject the European Commission's proposal to impose permanent anti-dumping duties on titanium dioxide (TiO2) from China. This is because the white pigment is an important raw material for coatings, paints and printing inks. It accounts for up to 40% of raw material costs and 20% of the cost of the end product. According to the association, the planned punitive tariffs threaten the long-term viability of the EU paint industry, which has an annual turnover of 33 billion euros and more than 150,000 jobs.
Negative impact 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, CEPE's Managing Director. "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."
TiO2 will become significantly more expensive
European titanium dioxide manufacturers are currently unable to meet the demand from the EU industry, meaning that imports from China can hardly be replaced, 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 in other parts of the world who can continue to source TiO2 from China at lower prices and sell their paints on the EU market."