The U.S. imposition of additional tariffs has significantly affected China’s building materials industry, with key impacts as follows:
Export Obstruction and Cost Pressures
The U.S. is a major export market for Chinese building materials. Tariffs of 10%-34% have reduced price competitiveness, leading to potential declines in export volumes. Meanwhile, companies reliant on U.S. raw materials (e.g., steel and aluminum) face rising costs, with procurement expenses increasing by 20%-30%, squeezing profit margins.
Market Diversification and Industry Consolidation
To mitigate tariff risks, some firms are shifting focus to Southeast Asia, Europe, and other markets, though this requires time and resources to restructure supply chains1,3,6. Less competitive small and medium-sized enterprises (SMEs) may exit the market, accelerating industry consolidation. Leading companies, however, are enhancing resilience through technological upgrades and operational optimization.
Policy Countermeasures and Domestic Demand Stimulus
The Chinese government may offset tariff impacts via tax cuts, subsidies, and expanded infrastructure investments. For instance, infrastructure and affordable housing projects could boost demand for green building materials and prefabricated construction.
Supply Chain Restructuring and Global Expansion
Nearly 40% of firms plan to relocate production overseas (e.g., Egypt, Southeast Asia) to bypass tariffs and reduce reliance on single markets5,7. For example, China Jushi has adjusted export routes through overseas bases, partially offsetting tariff effects.
Long-Term Technological Upgrading and Standards Competition
Companies must pivot to high-value-added products (e.g., smart construction, low-carbon materials) and engage in reshaping global trade rules to counter U.S. technical barriers framed as environmental or carbon footprint requirements.
In summary, while tariffs impose short-term challenges, they are driving structural reforms and innovation in the industry, creating a mix of immediate pressures and long-term opportunities.