When Tariffs Hit The Paint Market: U.S. Disruptions and the Canadian Impact

In early 2025, the U.S. government imposed sweeping 25 % tariffs on most Canadian, Mexican, and Chinese goods, with a lowered 10 % tariff on energy products. These trade actions, begun February 1 and set fully in effect by April, target a broad set of industries including components and materials vital to paint and coatings production.

The American Coatings Association immediately warned that these tariffs would introduce disruptions and increased costs across the industry. Canada, the U.S. coatings industry’s largest trade partner, supplies key raw materials and intermediates used in paint formulas. As tariffs drive up the cost of imported inputs, paint manufacturers in North America may face squeezed margins or be forced to pass costs downstream.

One consequence is that supply chains become more brittle. Even if a manufacturer sources locally, many specialty chemicals and additives (which often come from China or cross-border suppliers) could see tariff exposure or logistical delays. The PCI Magazine warned that supply-chain disruptions are likely, especially for coatings that rely on imported feedstocks.

For Canadian contractors and homeowners, the impacts are already materializing:

• Higher material costs: Expect upward pressure on sealants, primers, specialty coatings, and additives. While not every paint line will see a sharp hike, margin-sensitive or premium products may adjust faster.

• Inventory risk: As manufacturers conserve cash or slow production in response to tariff uncertainty, contractors may find it harder to get certain specialty products in a timely way.

• Regional price variance: Local availability and freight costs will play a bigger role. Some cities might see steeper increases depending on import routes, border congestion, or distribution networks.

• Contract risk: Fixed price contracts written before these tariff moves might become unprofitable. Contractors should build in clauses for raw material or import cost escalation.

The Canadian federal government responded by rolling back many counter tariffs on U.S. goods as of September 1, 2025, though tariffs on steel, aluminum, and automobiles remain. This easing helps some sectors but doesn’t directly relieve the raw-material pressures affecting paint lines.

A real world example underscores the volatility. Roustan Hockey, Canada’s last large-scale wooden hockey stick factory, has faced surprise tariffs and delays on cross border shipments even for small orders due to shifting U.S. customs enforcement. While not paint-related, their experience illustrates how small changes in trade policy can cascade into manufacturing delays and unexpected cost burdens for businesses.

What Contractors & Homeowners Should Do Now

1. Lock in pricing with suppliers early. If you know a project is coming up, negotiate your material rates now before further increments occur.

2. Increase buffer inventory for key items. For specialty coatings or additives that may be vulnerable to tariff shocks, keep more stock on hand if storage allows.

3. Revisit contract language. Add clauses that allow for material cost escalation or supply disruption in longer contracts, especially with high risk coatings.

4. Explore alternate sources. Investigate domestic or tariff-exempt manufacturers, regional formulations, or local specialty suppliers that may avoid cross-border risk.

5. Communicate with clients. Be transparent: explain tariff risk, potential cost variability, and why early commitments or flexible scheduling may be necessary to maintain quality.

Tariffs introduced by the U.S. in 2025 are reshaping supply flows and cost structures in the North American paint industry. For Canadian contractors and homeowners, the effects are already felt: higher input costs, supply uncertainty, and greater risk in fixed-price work. But with proactive planning, negotiating strategies, and smart sourcing choices, the best businesses can weather the turbulence and help clients through it with integrity and foresight.