>> Karen Parker, editor-in-chief

Surveys Reveal How Adhesive and Sealant Companies View the US Tariffs

In September and October, I was able to attend several events for the adhesive and sealant industry, as well as the broader chemical industry. As you might guess, one of the issues that is top of mind right now is the challenging business environment, due in part to tariffs put in place by the current U.S. administration and the uncertainty these policies have created within the world economy.

Until now, I hesitated to write about the impact tariffs will have on the adhesive and sealant industry because I was waiting for specific data that would provide insight. There is still a lot of uncertainty surrounding this issue; for instance, pivotal court cases challenging the legality of the tariffs put in place by the Trump Administration—and the conflicting court rulings on those cases—pose problems for importers, as a ruling against the tariffs could trigger large-scale refunds and curtail executive trade authority.

In the past few months, associations within the adhesive and sealant industry have provided some information that gives a clearer idea of what industry players think about the current tariff situation.

In August, the Adhesive and Sealant Council (ASC) conducted a survey of its membership to gain a clearer understanding of how Trump Administration tariffs would impact members. The association received responses from approximately one-quarter of its membership (31 member companies). According to a report released by the association, while the sample size was small, it comprises a diverse group of companies—both mid-sized and smaller—that includes raw material suppliers, adhesive and sealant manufacturers, and distributors.

The ASC’s survey report provided three conclusions. First, there is general agreement among the companies surveyed that tariffs are a bad idea and that they are or will have “a measurable economic impact on ASC member companies.” Second, the survey found that raw materials coming from China to support the building and construction market “are the most threatened by the tariffs.” Additionally, most survey participants reported that “navigating their business through an ever-changing tariff policy environment” was difficult. Finally, the ASC reported that most survey respondents said that because of the tariffs, “price increases for U.S. customers are or will be implemented.”

The European tape industry tells a similar story. At the end of August, Afera, The European Adhesive Tape Association, released results of a survey the association conducted from March 31 to April 9, in which it posed five questions to members. The survey found that when asked if EU–U.S. tariffs could impact their business, participants said yes. Concerns members raised included rising costs across supply chains, disrupted procurement and raw material sourcing, as well as inflation pressure and oversupply in EU markets due to export issues. When asked what the biggest impact would be on their business if tariffs evolve, members cited raw material cost increases, supply chain instability, and an economic slowdown. Afera quoted one survey participant who said, “Tariffs won’t just shift trade — they’ll reshape the economy. We’re not exempt.”

When Afera asked members to identify the part of the value chain most vulnerable to tariffs, the almost unanimous answer was raw materials. Points raised repeatedly included the unequal global distribution of raw material production, long timeframes and high costs to relocate or replicate capacity, and dependence on certified sources, some of which are extra-EU.

Finally, Afera asked members what the association should do in response to pending tariffs. Respondents called on the association to provide clarity—including on affected materials and tariff codes and financial and regulatory consequences—strengthen advocacy through representation to the European Commission and promoting fairness in trade (especially against underpriced imports), and raise industry visibility by educating tape users and adjacent industries, campaigning for local-to-local production, and reinforcing the strategic importance of the tape industry in value chains.

It is important to note that, when speaking about these surveys with the associations that conducted them, it was pointed out that some members feel the tariffs will help their businesses. While they do not represent the majority opinion, their views should still be noted. In addition, more extensive economic data on the impacts of these tariffs has yet to be fully explored; we will learn more in the coming months.

Please enjoy this information-packed issue of ASI. Among the articles featured this month are several that explore the use of PSAs and other adhesive and sealant technologies within the building and construction industry, a report on a 40-year study of sealant durability in construction, and an article examining the importance of measuring surface energy. As always, please contact me at parkerk@bnpmedia.com if you have ideas or suggestions you would like to share.