Against the backdrop of escalating global trade tensions, the US tariff policy towards China has once again become a focal point. The Trump administration announced the establishment of a "minimum benchmark tariff" of 10% for all trading partners and imposed higher tariffs on dozens of countries and regions, including China, with a tariff rate of up to 34% on China (including Hong Kong and Macau). However, in this tariff storm, organosilicon unexpectedly obtained exemption and became the focus of market attention.
The announcement of the exemption list for organic silicon undoubtedly provides a breathing space for relevant enterprises. However, this has not changed the downward trend of DMC market prices in China. The decline in the price of silicon metal on the raw material side, as well as the rise in downstream companies' price suppression sentiment, have jointly driven the sustained decline in DMC prices. In the context of weak market supply and demand, enterprises have adopted destocking strategies to cope with potential market risks in the future.
At the same time, the Chinese government quickly responded by announcing a 34% tariff on all imported goods originating from the United States to counter the unreasonable tariff policies of the United States. The Hong Kong SAR government has stated that it will continue to maintain its status as a free port, implement a free trade policy, and not impose tariffs on American products. This series of measures undoubtedly intensifies the trade game between China and the United States, and adds more uncertainty to the future development of industries such as organosilicon.