Europe's paint industry is facing a major crisis that could have far-reaching consequences. The problem revolves around a key ingredient called titanium dioxide, a white powder used in making everything from paint and sunscreen to food coloring and plastics. Many European paint manufacturers rely on China to supply this crucial compound, but the European Union (EU) is considering placing heavy taxes on Chinese titanium dioxide imports, and the impact could be disastrous.

The Roots of the Problem

For years, Europe has been reducing its dependence on Russian natural gas, which has driven up energy costs across the continent. On top of that, Europe is struggling to keep up with the growing competitiveness of countries like China and the United States, both of which have managed to outpace European industries in many areas. Meanwhile, the U.S. is actively offering tax breaks to attract manufacturers, further hurting Europe's industrial output.

This has led to what many are ca...