The Plastics Industry Association (PLASTICS) released an economic analysis on Wednesday examining the Trump Administration’s announced decision to impose an additional 50 percent tariff on certain Canadian plastics and plastic products.

A post on the PLASTICS website said the tariffs are to counter discriminatory measures.

“The action responds to Canada’s tariffs on U.S. motor vehicles, which the President determined impose an unreasonable burden on U.S. commerce while favoring imports from other countries,” wrote Perc Pineda, PLASTICS chief economist.

Pineda called the tariffs a “targeted response to Canada’s automotive trade measures.”

He also wrote that “the risk of broad supply disruptions appears limited” because the United States maintains strong domestic production and a trade surplus with Canada in the affected plastics categories.

Pineda’s report noted that the U.S. has an opportunity to strengthen its North American plastics trade position.

“At the same time, the ongoing USMCA (United States-Mexico-Canada) review presents an opportunity to address remaining trade imbalances and reinforce the competitiveness of North America’s integrated plastics supply chains,” Pineda wrote.

The United States continues to import more plastics from Canada than it exports, Pineda wrote.

PLASTICS regularly writes about how tariff policies are affecting trade, and has spoken out about policies that the organization believes could hurt the industry.

The issue has also been a major concern for processors and equipment OEMs over the course of the Trump administration, as reflected in PMM’s annual Machinery Investment Surveys.

Even after the Supreme Court struck down Section 232 tariffs, the administration continues to find other routes to impose levies.

“I think the administration will continue to keep chipping away what they can and put tariffs where they can and see if it would stick,” Pineda told PMM in a July 27 interview. “... The whole tariff environment is still evolving, and we don't really know what's going to happen.”

Earlier this year, PLASTICS reported that combined U.S. exports of plastic materials and resins, plastic products, machinery and molds declined 3.4 percent to $73.6 billion last year. In that post, PLASTICS cited changes in U.S. trade and tariff policy in 2025 that led to the contraction in plastics trade and significantly higher import duties.