The domestic DMC market prices are showing a downward trend, with the current average transaction price falling to 13350 yuan/ton, a decrease of 250 yuan from the previous working day. At the beginning of the week, individual factory quotations remained stable at a high level. Due to high inventory pressure and strong willingness to accept orders, there is more room for negotiation in actual transactions. The main factories in Shandong have reserved orders today, and the transaction situation is still acceptable. At the beginning of this week, downstream companies were mostly adopting a wait-and-see attitude, with a general increase in price cutting sentiment. Some companies made additional orders for essential needs when prices were lower. On the raw material side, the price of silicon metal has dropped by 200 yuan/ton, and the high inventory in the industry still needs a long time to be cleared. It is expected that the short-term price will fluctuate at a low level. Supply side: Enterprises mainly focus on destocking. On the demand side, there is a predominant wait-and-see attitude towards gaming, with a general increase in price suppression sentiment.
The United States has imposed a 34% tariff on China, with exemptions for organic silicon! Hong Kong: Continue zero tariffs on the United States On April 2nd Eastern Time, US President Trump signed two executive orders at the White House regarding so-called "equivalent tariffs", announcing the establishment of a "minimum benchmark tariff" of 10% for all trading partners, while imposing higher tariffs on dozens of other countries and regions, including China, on top of the 10%. Among them, the "equivalent tariff" rate imposed by the United States on China (including Hong Kong and Macau) is 34%, effective from 12:01 am on April 9, 2025, for goods entering or being extracted from warehouses for consumption in the Eastern United States. However, goods in transit shipped before 12:01 am Eastern Daylight Time on April 9, 2025 are exempt. In addition to this measure, Trump also announced the cancellation of duty-free measures for small packages from China starting from May 2nd, mainly targeting small packages worth $800 or less imported from mainland China and Hong Kong.
It is worth noting that the executive order includes a 37 page tariff exemption list, which details nearly 1000 types of goods. These products mainly include: (1) goods subject to 50 USC 1702 (b) restrictions; (2) Steel/aluminum products and automotive/automotive parts that have been subject to tariffs under Article 232; (3) Other products listed in Annex 2 of the Executive Order, including primary shaped polydimethylsiloxane (39100000), polycrystalline silicon, silicon carbide, copper, pharmaceuticals, semiconductors, wood products, specific key mineral resources, energy and energy products; (4) All goods that may be subject to future Article 232 tariffs; (5) Gold and silver; (6) Energy and certain minerals that the United States does not have; (7) Mexican and Canadian products that comply with USMCA (excluding goods subject to tariffs under Section 232); (8) All goods from trading partners subject to the tariff rates listed in the second column of the Harmonized Tariff Schedule of the United States (HTSUS).
Prior to this, the United States had already imposed a 20% tariff on Chinese goods. Now, with a combined 34% tariff, the actual additional tax rate is as high as 54%. This is the largest new tariff measure announced by Trump since taking office on January 20th this year, claiming to "prevent other countries from exploiting the United States".
As a countermeasure, on April 4th, the State Council Tariff Commission issued the "Announcement of the State Council Tariff Commission on Imposing Additional Tariffs on Imported Goods Originating from the United States" (Tariff Commission Announcement No. 4 of 2025). Starting from 12:01 pm on April 10, 2025, all imported goods originating from the United States will be subject to an additional 34% tariff on top of the current applicable tariff rate; The current bonded and tax reduction policies remain unchanged, and the additional tariffs imposed this time will not be reduced; Goods that have been shipped from the place of origin before 12:01 on April 10, 2025 and imported between 12:01 on April 10, 2025 and 24:00 on May 13, 2025, will not be subject to the additional tariffs specified in this announcement.
On April 3rd, the Hong Kong SAR government strongly opposed and expressed dissatisfaction with the United States imposing so-called equivalent tariffs on Hong Kong products. The Hong Kong SAR government has stated that Hong Kong is a free port and has always supported and pursued free trade. It has never imposed tariffs on all imported goods, including American products. On April 6th, the Financial Secretary of the Hong Kong Special Administrative Region, Paul Chan, wrote in his essay titled "Steady Response and Seizing Opportunities": "We will continue to maintain our status as a free port, implement free trade policies, and ensure the free and convenient flow of goods, funds, and information." This means that even if the United States announces tariffs on Hong Kong products, the Hong Kong government currently does not intend to impose tariffs on American products.