U.S. Imposes 34% Tariff on China Imports, Companies Respond

On April 3, 2025, the U.S. government announced a new tariff policy, imposing a 34% tariff on imports from China, 46% on imports from Vietnam, 36% on imports from Thailand, and 26% on imports from India. This policy, referred to as the "reciprocal tariff," has prompted over 30 listed companies in China to respond to the potential impact on their businesses.

By April 6, these companies had released statements or interacted with investors to address the implications of the new tariff policy. The responses varied widely, with some companies expressing significant concern due to their high exposure to the U.S. market, while others indicated that the impact would be minimal. Several companies also mentioned that they had already prepared for such eventualities or were actively seeking strategies to mitigate the potential effects of the tariffs.

Fulian Stock, for instance, highlighted that the U.S. is its primary market, with 65.73% and 65.74% of its revenue coming from the U.S. in 2023 and the first half of 2024, respectively. The company has been affected by U.S. tariffs since 2018 and has partially shifted production to overseas facilities to reduce the impact. However, the majority of its production still occurs in China, making it vulnerable to the new tariffs.

Tianzhen Stock noted that its U.S. factory, with a planned capacity of 200 million square meters, will be affected by the tariffs due to the import of raw materials, equipment, and spare parts from other countries. Bedar Pharmaceuticals, on the other hand, reported that pharmaceuticals are exempt from the new tariffs.

Ruike Technology, which has factories in the U.S. and Mexico, stated that the tariffs could benefit its overseas production and sales, allowing it to serve clients more efficiently and expand its overseas business. The company is closely monitoring the international trade environment to ensure the smooth operation and development of its overseas ventures.

Several other companies, including Shenghong Technology, Changying Precision, and Hongya Numerical Control, reported that the impact of the tariffs on their businesses would be limited due to their relatively low exposure to the U.S. market. These companies export to over 70 countries and regions, with the U.S. market contributing a small portion of their total revenue.

Some companies, such as Maid Medical and Daotong Technology, have already taken proactive measures to prepare for the tariffs. Maid Medical, for instance, has been closely monitoring U.S. tariff policies and has implemented strategies to mitigate their impact. The company has several production bases worldwide, including one certified by the FDA, which allows it to meet global market demands, including those in the U.S.

Daotong Technology has also been proactive, securing manufacturing sites in low-tariff countries and regions and preparing personnel to transition production within a month. The company has a robust marketing and service network in Europe, Asia-Pacific, the Middle East, and South America, which it believes will help mitigate the impact of the tariffs.

Huali Group has also made preparations for the tariffs, aiming to minimize their impact on its exports to the U.S. Bowei Alloy, which has a 2GW battery cell and component project in the U.S., believes that this project will help it avoid the impact of the tariffs. The company's Vietnam materials base, which primarily serves the Southeast Asian market, can also help reduce the impact of the tariffs on its U.S. exports.

Overall, the responses from these companies indicate that while some are concerned about the potential impact of the tariffs, many have already taken steps to mitigate their effects. The companies are closely monitoring the situation and are actively seeking strategies to ensure their businesses remain stable and profitable in the face of the new tariff policy.