A US trade case against Canada’s only examined citric acid exporter is weeks from a final ruling, and it reaches some citrates but not others. What that means for 2027 ingredient contracts.
By Yehuda B Abraham, IHR Magazine. November 5, 2026.
In June, Washington set a preliminary countervailing duty of 16.50 per cent on citric acid from Jungbunzlauer Canada’s plant in Port Colborne, Ontario. For Canadian buyers of acidulants and citrate minerals, citric acid duties are now the most concrete supply-chain risk on the table. On November 5, Jungbunzlauer added Johan Westman, chief executive of the Swedish ingredients group AAK, to its board.
Port Colborne carries more weight than its size
The Basel-based company reports CHF 1.3 billion in sales, close to 1,400 employees and customers in more than 130 countries. The Kahane family has owned it since 1967.
Port Colborne opened in 2002 to supply the Americas. About 165 people work there, fermenting Ontario corn into citric acid and special salts, and the company says it has put CA$560 million into the site over two decades. A CA$200 million xanthan gum plant, the first in Canada, is under way with CA$4.8 million from the Invest Ontario Fund. Its first phase was scheduled for spring 2026 and up to 50 new jobs.
Few plants like it exist outside Asia. Global citric acid sales came to about US$3.63 billion in 2024, and an industry estimate cited by ChemTradeAsia puts 60 to 70 per cent of production capacity in China.
The citric acid duties case has gone two ways so far
ADM, Cargill and Primary Products Ingredients Americas filed their petition on January 21, 2026. They claimed Canadian product was being dumped at margins of 62.75 to 97.39 per cent. In August, Commerce’s preliminary finding put Jungbunzlauer’s dumping margin at zero.
On subsidies, Commerce went the other way, and its rate has applied to all Canadian exporters since June 26. Public funding helped build Port Colborne, but the programs Commerce counted are set out in its decision memorandum rather than the public notice. A case resting on subsidies alone is a smaller threat than the one the petitioners filed.
There is precedent for these cases fading. A 2009 US order on Canadian citric acid was revoked in 2020, after the domestic producers dropped out of the sunset review. ADM and Cargill have since returned. India’s exporters, for comparison, face combined preliminary deposits of 162.10 per cent.
Commerce is due to issue its final determination by about January 8, 2027, and the International Trade Commission hearing follows on January 12. A duty order needs affirmative findings from both.
Magnesium and zinc citrate sit outside the case
The scope lists citric acid, sodium citrate and potassium citrate in any grade. It also covers crude calcium citrate and any blend in which those salts make up 40 per cent or more by weight. Magnesium and zinc citrate, two of the most common forms in Canadian mineral formulas, are not mentioned. USP-grade calcium citrate containing at least 2 per cent of a functional excipient, such as starch, is excluded outright.
Health Canada handles the covered ingredients differently, and that affects how much is at stake. Its ingredients database allows citric acid monohydrate only as a non-medicinal ingredient, for eight purposes ranging from acidifying agent to antioxidant preservative. Potassium citrate is a Schedule 1 mineral and can serve as the licensed medicinal ingredient on an NPN. A supply problem with that salt can reach the product’s claim, not only its excipient list.
Finished tablets exported to the US rarely come close to the 40 per cent line. A co-packer shipping bulk sodium citrate south almost certainly crosses it.
The board, and a new plant on the US side
Westman, 53, joined AAK in 2018. He also chairs Absolent Group and sits on the board of Thule. AAK supplies plant-based oils and fats for food, confectionery and infant nutrition. In 2025 it reported net sales of SEK 46,021 million from 19 plants and roughly 4,000 employees, and adjusted operating profit rose 9 per cent at constant currency.
His arrival gives Jungbunzlauer two directors who have led listed ingredient companies. Vice-chair Mauricio Graber was chief executive of Chr. Hansen. Chair Louis Kahane took over from his father in September 2024, ending a 31-year tenure.
Jungbunzlauer has not connected the appointment to trade policy; that reading is IHR’s. Its recent investments fit it, though. In November 2025 the company bought a multipurpose plant in Thomson, Illinois, from IFF, its first US site. Anything made there would fall outside an order on Canadian goods, although the company has not said what Thomson will produce.
Xanthan gum may matter more over time. The US applies a 154.07 per cent China-wide anti-dumping rate to Chinese xanthan. Once qualified, an Ontario source would give makers of gummies, protein shakes and thickened products an option inside the CUSMA zone.
What to do before the final rulings
- Sort every citrate SKU by the specific salt, since only some forms are covered.
- Ask each supplier which plant made the lot, whether US-bound shipments already carry the deposit, and who pays if an order is confirmed.
- Put a duty clause in 2027 ingredient contracts so price follows the outcome, instead of fixing a full-year number now.
- Have a customs broker check US-bound powders, effervescents and electrolyte mixes against the 40 per cent blend rule.
- Begin qualifying a North American xanthan supplier now, because validating a second source takes months.
Within weeks, the deposit importers are paying today will turn into either a standing cost or a refund.
Frequently Asked Questions
Who is Johan Westman? Born in 1973, Westman holds an MSc in industrial engineering and management. Before AAK he was president and chief executive of FinnvedenBulten, a Swedish automotive fastener maker, after running a Shiloh Industries division in Europe and consulting with Arthur D. Little. His Jungbunzlauer appointment took effect immediately.
Which US tariff codes does the citric acid case list? The notices cite HTS subheadings 2918.14.0000 for citric acid, 2918.15.1000 and 2918.15.5000 for citrate salts and esters, and 3824.99.9397 for blends. The codes are listed for convenience only. Customs applies the written product description, so a product can be in or out regardless of how it is classified.
What happens to deposits if the final ruling is negative? A negative final determination by either Commerce or the ITC ends the investigation. Cash deposits collected since the preliminary finding are then refunded to importers. An affirmative outcome from both agencies turns the deposit into a duty order, normally reviewed annually on request and subject to a sunset review after five years.
How has the Port Colborne site expanded? In 2015 Jungbunzlauer took full ownership of the neighbouring Ingredion corn mill and reconfigured it to supply its own glucose feedstock. A second energy-saving evaporator was installed in February 2026. The xanthan gum line is the next phase.
This is independent editorial analysis. It refers to Jungbunzlauer and AAK as examples of a supply-chain trend and does not endorse any company or ingredient. Check NPN status, licensed claims and the written trade scope before acting.
