Titanium Dioxide Prices Set to Surge as US China Tariff Clash Pushes Up to 125 Percent Hike

A fresh wave of tariff hikes between the US and China is sending shockwaves through the global coatings industry. Starting April 2, the United States imposed reciprocal tariffs on goods from over 60 countries, with most facing a 10% surcharge. However, Chinese imports now face a staggering 145% duty, prompting China to retaliate with a 125% levy on US goods.

Chemours, one of the world’s leading titanium dioxide suppliers, quickly reacted. In a recent notice, the company announced it will impose a 125% tariff surcharge on products exported to China, effective May 1, 2025, for new or contract-permissible orders. Chemours explained the hike stems from steep cost increases due to China’s counter-tariffs and emphasized it had evaluated all alternatives before reaching this decision.

The company acknowledged the burden the adjustment may place on clients but stated it is leveraging its global production network and procurement strategy to manage costs. Chemours’ main supply to China originates from Mexico, with only limited volumes from the US, but market speculation has already driven up the price of US-origin titanium dioxide on psychological expectations.

Industry analysts say the full impact may not be immediate, but stress that titanium dioxide’s role in coatings, plastics, and inks means the ripple effect could spread across the entire value chain. If demand remains weak downstream, there’s growing uncertainty over whether Chinese buyers will accept price increases in the months ahead.

Meanwhile, Sun Chemical, part of Japan’s DIC Group, has also responded to escalating tariffs by introducing surcharge fees on affected pigment products, including those produced or imported in the US. The company cited sharp cost increases in raw materials, base chemicals, and equipment, despite high domestic sourcing ratios.

President of Color Materials Brian Panczyk stated that the surcharges represent a “significant cost increase,” and emphasized the firm’s intention to adjust fairly and explore supply chain alternatives. Customers will be informed case-by-case regarding the timing and magnitude of added charges.

Sun Chemical has already raised prices multiple times in recent months. On January 1, 2025, it increased prices for part of its global pigment portfolio, citing inflation, sustainability compliance costs, and rising production expenses. Another hike followed on April 1, 2024, for pigments and dispersions.

With over 22,000 employees worldwide and $8.5 billion in annual sales, DIC and Sun Chemical serve diverse sectors, including automotive, cosmetics, printing inks, and industrial coatings. As tariff-driven inflation takes hold, price volatility may become the new normal in the coatings supply chain.