Chinese companies prepare to respond to new US tariff push

The United States' new tariff push has limited impact on Chinese companies in several sectors, such as steel, information and communication, automobile, power equipment, pesticides and fertilizers, home appliances, as well as the food and beverage industries, Chinese financial news outlet Yicai reported on Monday, citing sayings of some A-share listed companies.

"Due to China's small-scale steel exports to the US, the impact of the new tariff push on China's steel exports to the US is limited," said a steel industry company.

A company from the power equipment industry said the latest US tariff hikes to the global market mainly affect goods directly and indirectly exported to the US market. For now, the impact is under control because a few of the company's products are directly exported to the United States.

China exports a limited number of cars to the US each year. In 2024, the export volume reached 116,000 units, including Tesla vehicles made in China, according to data collected by Yicai. One Chinese carmaker said that the company has adjusted its strategy and gradually reduced exports to the US since news broke of the high tariff rate imposed by the US administration on China-made cars at the end of last year.

Some packaging and testing companies in microchip assembly industry have reported efforts to reduce reliance on US equipment and material supply-chains, focusing on accelerating the shift to domestic products.

Dongpeng Beverage Group's main raw material procurement and production base have realized a 100 percent domestic layout, with 100 percent of its packaging material sourced domestically, according to the company.

A leading home appliance company said its products that are sold to the US are produced in Mexico, in line with the US-Mexico-Canada Agreement (USMCA). The company noted that the additional tariffs have a minimal impact. However, it noted the potential impact caused by decreased market demand.