With the escalating trade friction between China and the United States, silicone enterprises are facing unprecedented challenges. The latest executive order issued by the White House in the United States announced a 10% tariff on goods imported from China, adding to the previously imposed 10%. The cumulative tariff rate for the year has been raised to 20%. This policy adjustment has had a huge impact on the export business of silicone enterprises.
Mr. Luo, the head of a silicone products foreign trade enterprise in Guangdong, said that if the US raises tariffs to 20% and customers demand to share 10% of the cost, half of the company's ordinary silicone product line will face the risk of production stoppage. This news is worrying, but it also reminds silicone companies to actively respond to the challenges brought by the US China trade friction.
In order to reduce the cost pressure caused by tariffs, silicone enterprises can strengthen technology research and development and increase product added value; At the same time, actively exploring emerging markets and reducing dependence on the US market. In addition, strengthening communication and collaboration with customers to jointly share cost pressures is also an effective way to deal with the trade friction between China and the United States.