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Impact of increased US tariffs on Chinese hardware products

2025-04-10

Recently, the US government has implemented a new round of tariff measures on Chinese imports against the backdrop of the Sino-US trade war, covering electric vehicles, semiconductors, steel, aluminum products and other fields. Although these measures are mainly aimed at the high-tech and energy fields, hardware products are also indirectly affected.


Although hardware products are not directly included in the latest tariff list, the production costs of hardware products may rise due to the increase in tariffs on the raw materials involved (such as steel and aluminum). In addition, the increase in tariffs may lead to adjustments in the supply chain and affect the export of hardware products. Domestic raw material prices may rise, compressing profit margins; the overall cost of downstream hardware products has risen, and the export price advantage has been weakened; the pressure from customers to "lower prices or transfer orders" has increased.

Export orders have decreased and competition has intensified. According to customs data, China's exports of standard hardware (such as screws, nuts, and hardware accessories) to the United States have declined by more than 10% overall since 2023. Some US customers have begun to shift orders to Southeast Asia (Vietnam, Thailand) or Mexico and other countries for no other reason: lower tariffs, closer logistics, and the same ability to meet basic quality requirements.

The customs clearance period is extended, and trade frictions are frequent. In addition to tariffs, the US Customs has also tightened the technical standards and compliance review of Chinese export products, especially hardware products involving safety and environmental protection, such as child locks, door stops, emergency exit devices, etc., which need to face higher compliance thresholds, and the export process cycle is prolonged, resulting in a decline in customer satisfaction.


Countermeasures for Chinese hardware companies

Some leading companies choose to set up factories in Vietnam, Indonesia and other places for final assembly or packaging, and circumvent US tariffs by "change of origin". For example, some hinges, lock cylinders, and hardware handles are produced in China, then exported to third countries for assembly, and then enter the United States with the "Made in Vietnam" label.

Low-priced homogeneous products are the most affected, while hardware with technical barriers, patented designs, and functional innovations still have a stable market. For example: hinges with buffer hydraulic structures; hardware related to smart door locks; precision stamping parts for medical/new energy equipment.

With the support of ASEAN's "RCEP" policy, many companies have accelerated the expansion of Southeast Asia, the Middle East, and Africa. For example, the demand for building hardware and decorative hardware in countries such as Indonesia and the United Arab Emirates continues to grow, providing a buffer space for China's exports.

Some companies directly face end consumers through platforms such as Amazon, Wayfair, and Lazada, build their own brands, reduce dependence on traditional B-end channels (large European and American buyers), and achieve a "soft landing" for exports to a certain extent.


The Sino-US trade war is difficult to ease completely in the short term, and hardware export companies need to make long-term preparations. Systematic adjustments should be made from product strategy, market layout to supply chain collaboration.

In this process, it will also accelerate the transformation of China's hardware manufacturing to high-end, flexible, and digital, while stimulating new momentum for "going out" and building a new ecology of the global supply chain.