What is the impact of the US tariff increase on China's fiberglass industry?
In recent years, Sino-US trade frictions have continued to escalate, and the US has continued to increase its 301 tariff policy on China. In April 2025, the "reciprocal tariff" policy implemented by the United States significantly increased the comprehensive tariff rate of Chinese goods to 145%, which had a profound impact on the global industrial chain pattern.
In April 2025, the US government implemented a new tariff policy on major economies in the world on the grounds of "trade reciprocity", among which the tariff adjustment on Chinese goods was the most stringent:
Base tariff: From April 5, a basic tariff of 10% will be imposed on all imported goods;
Punitive tariff: From April 10, an additional 50% additional tariff will be imposed on Chinese goods. After superimposing the original tariff rate, the effective tariff rate of some products is as high as 145%, which is significantly higher than that of economies such as the European Union and India;
Industry restrictions: Cancel small-amount tax exemption (originally tax-free for packages below US$800), and set higher trade barriers for strategic industries such as new energy vehicles and composite materials. As a countermeasure, China imposed a 125% tariff on US imports, further exacerbating bilateral trade tensions and having a major impact on the import and export pattern of China's composite materials industry.
The high tariffs imposed by the United States on Chinese glass fiber have led to an increase in export FOB prices, weakening price competitiveness. my country's glass fiber exports are expected to face severe challenges. Data show that in 2024, my country's total exports of glass fiber and its products accounted for 26.75% of the total domestic production (7.56 million tons). From the perspective of export regional distribution, the United States is one of the main export destinations for my country's glass fiber. According to data from Zhuochuang Information, my country's total glass fiber exports will reach 2.1188 million tons in 2024, of which 245,700 tons will be exported to the United States, accounting for 11.60% of the total exports; the total export volume is US$3.029 billion, of which US$405 million will be exported to the United States, accounting for 13.37% of the total exports.
The tariff increase policy implemented by the United States has caused short-term troubles and long-term transformation pressure on China's composite materials industry through the dual strategies of "tariff barriers" and "technical blockades". The industry must take "market diversification, technological autonomy, and localization of production capacity" as its core strategy, and achieve a transformation from "cost advantage" to "technology and brand" advantages within a period of 5 to 8 years. Looking ahead, with the in-depth implementation of the domestic "dual circulation" strategy and the advancement of the global green and low-carbon transformation, the domestic demand potential of composite materials in the fields of new energy and high-end equipment manufacturing will continue to be released. In addition, with the further development of the markets along the "Belt and Road", it is expected that by 2030, the industry will form a new pattern of "North American market contraction, Asia-Pacific market expansion, and global market balance".