Recently, the US tariff policy has been adjusted again, which has a significant impact on China's silicone industry. In April 2025, the United States announced a 34% "reciprocal tariff" on Chinese goods. After adding the previous tariffs, the total tariff on Chinese silicone products is as high as 54%. This policy not only reshapes the global trade pattern, but also brings far-reaching challenges to the export, supply chain and industrial competitiveness of China's silicone industry.

Export costs are rising, and market competitiveness is frustrated
Tariffs directly push up the export cost of Chinese silicone products. Taking silicone sealants exported to the United States as an example, after the tariff increase, the terminal price of the product needs to increase by more than 30% to maintain profits, causing US importers to turn to low-cost regions such as Southeast Asia for procurement. Data shows that China's silicone exports to the United States in the first quarter of 2025 fell 42% year-on-year, and some companies have suspended quotations to the United States.

Supply chain adjustment pressure intensifies
In order to avoid tariff risks, some multinational companies are accelerating supply chain transfers. American silicone giant Dow Chemical announced that it will expand the production capacity of its Malaysian production base, aiming to increase the proportion of non-China supply chains in the Asia-Pacific region to 65% by the end of 2025. This trend forces Chinese silicone enterprises to accelerate technology upgrades. For example, Xingfa Group has increased its R&D investment and launched high-end silicone oil products that can replace imports, trying to break through trade barriers through differentiated competition.

Accelerating industry integration and industrial upgrading
Tariff policies have forced China's silicone industry to accelerate integration. Leading enterprises have expanded their scale through mergers and acquisitions. For example, Hesheng Silicon Industry has acquired three small and medium-sized silicone enterprises, and its production capacity has increased to 28%. At the same time, enterprises have accelerated the layout of overseas production capacity. Xin'an shares plans to build an annual production of 100,000 tons of silicone monomers in Vietnam, which is expected to be put into production in 2026.

Long-term opportunities and challenges coexist
Despite short-term pressure, China's silicone industry still has long-term competitiveness. The domestic market scale continues to expand, and silicone consumption is expected to reach 1.8 million tons in 2025, a year-on-year increase of 9%. Enterprises need to seize the strategic opportunities of the "dual carbon" strategy, increase R&D investment in emerging fields such as photovoltaics and new energy vehicles, and promote the extension of the industrial chain to high-end.

In the face of US tariff policies, China's silicone industry needs to take technological innovation as a breakthrough, optimize the supply chain, deepen international cooperation, and open up a new situation in the changing situation.