Clariant to Relocate Part of Mexico Production to the US

Clariant AG will shift part of its adsorbent production from Mexico to the United States in response to tariffs imposed by President Donald Trump, CEO Conrad Keijzer announced.

The Swiss specialty chemicals company will relocate production intended for the US market to an existing facility in Quincy, Florida, while maintaining its plant in Puebla, Mexico, to serve local demand. Clariant’s adsorbents unit produces materials used to remove impurities from various oils, with applications in edible oil refining and biodiesel purification.

The decision follows the threat of additional tariffs on Mexican exports, as Trump has already imposed duties on steel and aluminum and announced new tariffs on automobiles manufactured outside the US. The automotive sector accounts for approximately 10% of Clariant’s global sales.

Former Shell Plc CEO Ben van Beurden, who is expected to be elected Clariant’s new chairman on Tuesday, said industry challenges require "significant strategic decisions" and suggested that further consolidation is likely.

Trump is set to announce a new round of tariffs on April 2, which he has labeled "Liberation Day." Over the weekend, he stated that he would not reverse his trade strategy, even if it leads to higher prices. He has also urged auto executives to absorb the costs of tariffs, a measure BMW has agreed to apply to its operations in Mexico.

Mexican President Claudia Sheinbaum has stated that Mexico should not be affected by the April 2 announcement, as it does not tax US exports. However, the Mexican government is negotiating to remove tariffs on steel and aluminum, which have been in place since March 12, and to secure "preferential treatment" under Trump's trade policies.