The tariff policy imposed by the United States on China has had a profound impact on the ceramic and building materials industry, affecting multiple dimensions such as export costs, industrial chain relocation, and technological upgrading. The following is a comprehensive analysis:
I. Direct Impact and Industry Pains
1. The export costs have soared and the US market has shrunk.
In 2025, the Trump administration imposed a 34% “reciprocal tariff” on China, which, when added to the original rate, pushed the comprehensive tariff rate for ceramic products to as high as 65%, resulting in a 54% increase in export costs.
The share of Chinese tiles in the US market has further declined from about 2% in 2020. In 2024, the US has dropped out of the list of the top 20 countries in terms of China’s tile export value. Sanitary ware has been more significantly affected. The US accounted for 26% (28.49 million pieces / 841 million US dollars) of China’s sanitary ceramic exports. High tariffs have directly squeezed profit margins.
2. Supply Chain Domino Effect
The upstream industries such as glaze and pigment are hit by both the rising raw material prices (for instance, the price of cobalt oxide has increased by 200%) and the shrinking demand from the downstream market. As a result, small and medium-sized pigment and glaze factories are in a dilemma of “not daring to accept orders even when there are orders”.
Re-export trade in Southeast Asia has become a way to avoid tariffs, but it incurs additional logistics and container transfer costs (for instance, re-exporting through Malaysia can reduce tariff costs by 75%).
II. Industry Response Strategies and Transformation Opportunities
1. Diversified market layout
Unleashing domestic demand: The Chinese government has promoted the “trade-in” policy. In 2024, home renovation has driven the sales of ceramic tiles to exceed 120 billion yuan. Companies like Dongpeng and Marco Polo have increased their domestic sales share through package marketing and live-streaming conversions.
Emerging market expansion: The import volume of ceramics in ASEAN countries (such as Vietnam and Indonesia) has increased by 22%, and the NEOM project in Saudi Arabia in the Middle East has created a demand of 50 million square meters. Chinese enterprises are seizing the market through “technology export + local production”.
2. Technological Upgrading and Green Transformation
Digital glazes and functional glazes (such as antibacterial and self-healing) have become breakthrough points. The skin glaze technology for simplified glaze production has reduced costs by 12% and increased wear resistance by 50%.
◦ Low-carbon production: Mona Lisa’s “Zero Carbon Rock Slab” reduces carbon emissions by 40% through photovoltaic and hydrogen energy, and has obtained the exemption qualification for the EU carbon tariff.
3. Global Capacity Restructuring
Nearshore manufacturing: Companies are relocating production capacity to Mexico and Vietnam, but they are confronted with geopolitical risks (such as fluctuations in Mexico’s immigration policies) and the challenge of long construction periods.
Resource positioning: Invest in zirconium mines in Africa and cobalt mines in South America to ensure stable raw material supply.
III. Long-Term Impacts and Potential Risks
1. Trade policy uncertainty
The frequent adjustments to the US tariff policy (such as the temporary cancellation of duty-free treatment for small packages in February 2025 and its subsequent restoration) make it difficult for enterprises to formulate long-term plans.
Other countries may follow the US in setting up barriers. For instance, the EU will implement a carbon tariff of 90 euros per ton of CO₂ in 2026, further increasing export costs.
2. Risk of decoupling of industrial chains
The technology blockade between China and the US may affect high-end building materials equipment (such as BIM software and hydraulic systems), which could impact the progress of China’s super high-rise building projects.
Regionalization of standards leads to fragmentation, such as the United States promoting “democratic supply chain standards”, while China turns to markets in developing countries.
IV. Typical Cases and Industry Insights
Successful Transformation: By sponsoring the Dubai World Expo, Marco Polo achieved a 300% brand premium and broke away from its low-price label.
Risk Warning: Orders for enterprises directly exporting to the United States have plummeted by 60%, and they need to rely on re-exporting or the recovery of emerging markets to restore their market share.
Summary
In the short term, the US tariff policy has intensified the cost pressure and market contraction in the ceramic building materials industry. However, in the long run, it has forced enterprises to move towards technological upgrading, green transformation and global layout. In the future, the core of competition will shift to the comprehensive capabilities of “differentiated products + supply chain resilience + brand premium”.
Post time: Jul-21-2025