EU Chemical Import Curbs Raise Manufacturing Risk

14 September 2026

Executive Summary

Major European governments are preparing to seek new restrictions on imports of chemicals and plastics, potentially changing the cost and availability of important industrial inputs across the EU.

France, Italy and potentially Germany are expected to ask the European Commission to consider broad safeguard measures against sharply rising imports, particularly from China.

Products under discussion reportedly include:

• PET.
• Epoxy resins.
• Glass fibres.
• Other chemical and plastics products.

The measures could potentially involve:

• Import quotas.
• Additional tariffs.
• Other safeguard restrictions.

No such broad measures are currently in force.

That distinction is essential.

Under EU law, safeguard measures require an investigation demonstrating that increased imports are causing or threatening serious injury to European producers.

This is therefore an emerging trade-policy risk rather than an existing restriction.

The concern has arisen as Europe’s chemical industry faces high energy costs, weak demand and increasing competition from lower-cost imports.

UK Impact

UK manufacturers remain deeply integrated into European chemical and plastics supply chains.

Affected sectors could include:

• Automotive.
• Construction.
• Packaging.
• Aerospace.
• Electronics.
• Adhesives.
• Coatings.
• Composites.
• Food packaging.
• Consumer manufacturing.

UK companies sourcing materials from Europe could experience price changes if restrictions reduce competition from imported products.

Conversely, UK producers may see new opportunities to supply European buyers if products qualify under the eventual rules.

The precise impact would depend upon how any safeguard is structured.

Global Impact

Trade restrictions on basic industrial materials can travel rapidly through downstream supply chains.

PET affects packaging.

Epoxy resins are used in:

• Aerospace.
• Wind turbines.
• Electronics.
• Construction.
• Industrial coatings.

Glass fibres are important to:

• Composites.
• Automotive manufacturing.
• Renewable energy.
• Construction.

A relatively narrow customs measure can therefore affect a wide range of finished products.

The proposals also demonstrate a broader trend.

US tariffs are redirecting international trade flows.

European producers are then exposed to goods seeking alternative markets.

Europe may respond with its own restrictions.

Trade diversion can therefore create a chain reaction of defensive measures across jurisdictions.

Our View

Businesses should begin identifying exposure before any formal safeguard investigation produces measures.

Companies should ask:

• Which chemicals and plastics are critical inputs?
• Where do they originate?
• Are products imported directly into the EU?
• Could safeguards alter landed cost?
• Are alternative suppliers already qualified?
• Can UK-produced material substitute?
• Are long-term prices fixed?
• Can suppliers pass tariffs through?
• Could quotas affect availability?
• Are substitutes technically acceptable?
• Would changing material require regulatory approval?
• Is sufficient inventory available?
• Could stockpiling create storage or fire risk?
• Are contracts flexible enough to change origin?
• Are customs classifications accurate?

The risk-management opportunity lies in acting before a trade restriction becomes effective.

Once buyers all seek the same alternative suppliers, diversification becomes more difficult and expensive.

Risk Indicator: HIGH – CHEMICALS, TRADE & MANUFACTURING SUPPLY CHAINS

Disclaimer

The information contained within these Market Alerts is provided for general market awareness and informational purposes only. It does not constitute financial, legal, investment, regulatory or insurance advice. Whilst every effort has been made to ensure accuracy at the time of publication using multiple reputable and independently verified sources, geopolitical events, legislation, regulation and market conditions may change rapidly. Readers should obtain appropriate professional advice before acting upon any information contained herein.

Invictus Risk Solutions LLP – Helping organisations stay ahead of emerging risks through informed insight and independent analysis.