Although the high tariff policy of the United States will bring short-term shocks to Chinese companies, it will also force Chinese companies to accelerate transformation and upgrading. Through market diversification, technology upgrades, re-export trade and other strategies, metal parts manufacturers can not only survive the difficulties, but also occupy a more advantageous position in the global market. In the long run, improving core competitiveness and reducing dependence on a single market are the keys to sustainable development of enterprises. We hope that the Sino-US trade dispute will be eased as soon as possible to create a more stable business environment for the global industrial chain.

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The way out for Chinese metal parts manufacturers under the high tariff policy of the United States in 2025
2025.04.15

In 2025, Sino-US trade frictions escalated again. The US tariff on Chinese steel products soared from 25% to 70% and then soared to 104%, which brought a huge impact to Chinese metal parts manufacturers. Faced with this severe challenge, how should enterprises respond and find new growth points in adversity? The following are several key response strategies:

 

1. Develop diversified markets:

 

1. Expand emerging markets

 

Southeast Asia: Indonesia, Malaysia and other countries are vigorously promoting infrastructure construction, and there is a strong demand for high-quality metal parts, which can be developed in a targeted manner.

 

Middle East: Several countries in the Middle East hold a large amount of oil and foreign exchange, but the development of basic industries has always been a shortcoming. We can develop the Middle East market and work together for a win-win situation.

 

Africa: Africa is a market with huge potential, with relatively imperfect facilities and great room for development. At the same time, the shortcomings of industrial production capacity make them extremely dependent on imports. China's mature metal product manufacturing industry can adapt well to the African market.

 

2. Boost domestic demand

China has a vast territory and a large population, and it is still a market with huge potential. Zhejiang Jin's new industry is developing rapidly, the photovoltaic and wind power markets are huge, the new energy vehicle market is vast, and the demand for metal parts is growing rapidly. Boosting domestic demand is also a good idea. -

 

Second, technology upgrade: increase product added value and enhance core competitiveness

China's advantage in exports to the United States has always been cheap labor, but with the rise of artificial intelligence, more and more repetitive labor is replaced by machines, and China is losing its labor advantage. This is a good time to improve its technology level. Increasing the technical added value of products is the core competitiveness.

 

Third, re-export trade: bypass high tariff barriers and maintain US market share

Set up processing plants in Vietnam, Brazil and other countries, take advantage of local low tariff policies, and process semi-finished products before exporting to the United States.

 

Although the high tariff policy of the United States will bring short-term shocks to Chinese companies, it will also force Chinese companies to accelerate transformation and upgrading. Through market diversification, technology upgrades, re-export trade and other strategies, metal parts manufacturers can not only survive the difficulties, but also occupy a more advantageous position in the global market. In the long run, improving core competitiveness and reducing dependence on a single market are the keys to sustainable development of enterprises. We hope that the Sino-US trade dispute will be eased as soon as possible to create a more stable business environment for the global industrial chain.


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