Impact and Opportunities of U.S. Tariffs on the Iron Home Industry
Recently, U.S. President Donald Trump said that as early as February 1, 25% tariffs on Chinese exports to the United States. In the face of the familiar “policy formula”, iron household products industry will also be affected.
1. Rising costs and declining competitiveness
As a result of the increased tariffs, the cost of iron household products exported from China to the United States has risen significantly. For example, the increase in tariffs on iron Wire Fruit And Vegetable Basket and iron Kitchen Storage Rack which are typical household products, directly led to higher selling prices in the U.S. market. This not only undermines price competitiveness, but also makes consumers more sensitive when making purchases. This is particularly significant for the low- and mid-range markets, and could lead to a decline in sales, with some consumers potentially turning to alternatives produced in other countries, particularly in Southeast Asia.
2. Loss of market share
As tariffs rise, demand in the U.S. market may gradually shift to iron household products from other countries. For example, Vietnam, India and other countries with lower production costs and lower tariffs may become the new hotspot for U.S. imports, which makes China's iron home furnishings enterprises in the U.S. market share gradually declined, increasing the industry's market competition pressure.
3. Supply chain and margin compression
As a result of the U.S. tariff policy, enterprises either choose to absorb the increased costs or pass them on to consumers. If production costs cannot be effectively controlled, or firms are unable to increase the added value of their products, profit margins will be greatly reduced. At the same time, the tariff policy may also lead to instability in the supply chain, especially in the procurement of raw materials and logistics costs, and enterprises face more business risks.
In order to cope with the pressure from tariffs, the iron household products industry needs to adjust and innovate to find new competitive advantages. Therefore, FOSHAN EVER RISING plans to launch a new product of storage basket combining multiple materials to seek more innovation and breakthrough. The combination of metal, bamboo, wood, plastic, silicone and other materials can not only improve the functionality and aesthetics of the product, but also enhance the added value to a certain extent, which will help the company to stand out in the competitive market.
1. Functionality and aesthetics at the same time
By combining iron, bamboo, wood and other materials, the storage basket not only maintains the sturdiness of iron material, but also adds the natural texture of bamboo and wood, which enhances the aesthetics and environmental attributes of the product. At the same time, the addition of soft materials such as plastic and silicone can increase the flexibility and durability of the storage basket, making it suitable for different scenarios.
2. Environmental protection and sustainability
As renewable resources, bamboo and wood can meet the current market demand for environmentally friendly products. More and more consumers are concerned about the environmental attributes of products, especially in the European and American markets, where green and sustainable products are favored.
3. Enhance added value and market competitiveness
Multi-material combination storage baskets enhance the added value of the product through innovative design and material selection. For example, adding bamboo and wood elements to the metal frame not only makes it more visually appealing, but also increases its durability and practicality. Such products can usually be positioned in the mid-to-high end in terms of price to meet consumer demand for quality and design.
4. Adapt to different market demands
The combination of different materials makes the product more diversified and can meet the needs of different markets around the world. For example, the European and American markets prefer environmentally friendly and natural materials, while the Asian market may be more concerned about the functionality of the product and cost-effective. Through the combination of different materials, companies can flexibly respond to the changing needs of different markets.
The United States imposed tariffs on Chinese goods on the iron household products industry has caused a considerable impact, forcing enterprises to find new development strategies and market breakthroughs. And through innovative design, multi-material combination of storage basket products, not only can enhance the added value of the product, to meet the needs of different markets, but also in line with the global trend of green environmental protection, for enterprises to bring a broader market prospects.