Calix water treatment products dodge Trump tariffs due to Canadian supply chain

Australian environmental technology company Calix announced on Tuesday that its water treatment products sold in the United States will be exempt from recently imposed Trump administration tariffs.

The ASX-listed company imports magnesium oxide from Canada as a feedstock for its US Magnesia business. These imports are protected under the United States-Mexico-Canada Agreement (USMCA), which excludes compliant goods from the tariffs and remains valid until 2036.

This exemption gives Calix a potential market advantage as the US has a 52 per cent net reliance on magnesia imports, with the majority (61 per cent) coming from China – imports now likely subject to the new tariffs.

“Calix’s Magnesia products service the critical water treatment industry, providing a more economical and environmentally friendly solution to alternative water treatment products such as caustic soda,” the company stated in its announcement to the ASX.

The Magnesia business represents a significant portion of Calix’s revenue, accounting for 79 per cent of the group’s total revenue according to its most recent half-year results. US product sales made up 64 per cent of total group revenue during the same period.

Calix expects to record continued revenue growth in its Magnesia business in the second half of the financial year relative to the first half.

The company’s broader business focuses on environmental technology solutions for industrial decarbonisation and sustainability. Its patented platform technology delivers indirect heating of raw materials to enable efficient, flexible and renewably powered mineral processing and capture of industrial emissions.

Calix said it will continue to provide market updates regarding further developments related to the company.

Image: Calix Facebook