 A Leading Supplier to the Specialty Chemical Industry EU governments seek import curbs to protect chemicals industry
Sep 10, 2026, 9:16 AM ETFirst Trust STOXX European Select Dividend Idx Fd ETF (FDD), OPPE, VIS, XLI, FIDU, IYJ, BASFY Stock, BFFAF Stock, LNXSF Stock, LNXSY Stock, WKCMF Stock, WKRCF StockBy: Rob Williams, SA News Editor
European governments are preparing to seek broad restrictions on imports of certain chemicals and plastics as low-priced shipments, particularly from China, put additional pressure on the region’s struggling manufacturers, Reuters reported Thursday, citing people familiar with the matter.
France, Italy and potentially Germany plan to request European Union investigations into products including polyethylene terephthalate, or PET, epoxy resin and glass fibers, according to people familiar with the discussions.
PET is a polymer commonly used to make beverage bottles, food containers and other packaging. Epoxy resins are used in coatings, adhesives, electronics and composite materials, while glass fibers reinforce products used in construction, vehicles, wind turbines and military equipment.
The proposals have not been formally submitted and no restrictions have been approved.
For investors, safeguards could support pricing and factory utilization at European chemical producers such as BASF (BASFY)(BFFAF), Lanxess (LNXSF)(LNXSY) and Wacker Chemie (WKCMF)(WKRCF) by limiting the impact of cheaper imports. The protection would come with a tradeoff. Packaging companies, automakers, construction suppliers and other customers could face higher material costs if quotas tighten supply or allow domestic producers to raise prices. Any benefit also may take months to appear because the European Commission must investigate whether imports have increased enough to cause serious harm before recommending action.
The proposal reflects a broader change in European trade policy. Governments are becoming more willing to shelter strategic industries as U.S. tariffs restrict export opportunities and Chinese overcapacity redirects more goods toward Europe.
How safeguards work
Safeguards differ from the EU’s more common anti-dumping duties.
Anti-dumping measures generally target particular products from specific countries after investigators determine that they were sold below a fair price. Safeguards respond to a sharp increase in imports regardless of whether exporters broke trade rules.
Under a safeguard system, a certain volume of a product can enter the EU under normal tariff terms. Imports above that quota face an additional duty. Because the measure applies broadly, it can affect suppliers in countries that have free-trade agreements with the EU, not only China.
That wide reach is one reason Brussels has used safeguards sparingly. The bloc has more than 150 trade-defense measures in force, most involving targeted tariffs, but broad quota systems have been unusual outside sectors such as steel and ferro-alloys.
EU member states must initiate safeguard requests. Final measures would require support from at least 15 of the bloc’s 27 members representing 65% of its population.
Chemical producers face prolonged crisis
Europe’s chemical industry has been squeezed by high energy costs, weak demand and expanding Asian production. The sector relies heavily on natural gas and electricity, leaving European plants at a cost disadvantage against competitors in regions with cheaper energy.
BASF, Lanxess and Wacker Chemie are among the companies eliminating jobs or reducing production. European chemical investment also has fallen sharply as companies reconsider whether aging plants can compete with newer facilities in China, the Middle East and the United States.
China’s growing production capacity has compounded the problem. When domestic demand does not absorb that output, more material can be exported at prices that European producers struggle to match.
The European Chemical Industry Council reported that planned investment in European production capacity fell more than 80% in 2025. Plant closures announced since 2022 affected about 20,000 jobs and removed 17.2 million metric tons of capacity, according to the industry group. Financial Times
Approval is uncertain
France has expressed support in principle for investigating safeguards on selected chemicals and plastics. Italy is interested in products important to defense, automotive manufacturing, energy, shipbuilding and infrastructure.
Germany’s Economy Ministry also is open to considering restrictions, although it said it would evaluate any proposal based on the Commission’s findings. That stance is notable because Germany previously resisted some trade actions against China, an important market for German manufacturers.
Industry groups are approaching the proposal cautiously. Germany’s VCI said companies were preparing to assist governments with possible applications, but the association stopped short of endorsing sweeping restrictions across the chemicals sector.
That hesitation reflects divisions within the supply chain. Chemical producers may welcome protection from inexpensive imports, while companies that purchase those materials could find themselves paying more. Brussels therefore must decide whether safeguards would preserve European industry or simply send the bill to its customers.
https://seekingalpha.com/news/4641634-eu-governments-seek-import-curbs-to-protect-chemicals-industry?position=rta_news_sublogic_pretestlaunch_main_2_textlink&messageid=2900&mailingid=47435975&serial=47435975.2626&source=email_2900
Source 
Content mobilized by FeedBlitz RSS Services, the premium FeedBurner alternative. | 
