The joint statement reached by China and the United States on May 10-11, 2025, reduced the US tariffs on Chinese goods from a maximum of 125% to 10%, and China's tariffs on US goods from 125% to 10%. At the same time, both sides suspended the implementation of 24% of the tariff portion for a period of 90 days. What impact will this policy have on the refrigeration industry? The following is a summary of interviews conducted by reporters from Refrigeration Express with digital industry insiders:
Cost reduction: Export costs: Previously, the United States imposed high tariffs on Chinese refrigeration products, such as air conditioners and refrigerators, with tariffs reaching around 80%, resulting in a significant increase in the cost of exporting Chinese refrigeration products to the United States. Nowadays, tariffs have significantly decreased, export costs will be significantly reduced, corporate profit margins will be restored to a certain extent, and the price competitiveness of products in the US market will also be enhanced. Supply chain costs: Some high-end components of refrigeration products rely on imports. When the United States imposes tariffs, the cost of imported components from the United States increases, and companies need to invest funds in product adaptation and certification to find alternative suppliers. Now with the adjustment of tariffs, the cost of importing components from the United States has decreased, and the overall cost of the supply chain will also decrease accordingly. Market change: US market: Previously, high tariffs led to a shrinking market share of Chinese refrigeration products in the US, and US importers reduced their purchases from China due to rising costs. After the tariff adjustment, the price advantage of Chinese refrigeration products in the US market has been restored, and US importers may increase their procurement volume. The market share of Chinese refrigeration products in the US market is expected to gradually recover. Global market: Previously affected by the US market situation, Chinese refrigeration companies expanded into other overseas markets, triggering a global market pattern adjustment. With the reduction of tariffs in the US market, companies may rebalance their global market layout and adjust their investment in other markets accordingly. Meanwhile, some orders that were originally intended for other countries and regions may flow back to China. Industrial upgrading: Tariff adjustments have eased the cost pressure and market competition faced by enterprises, but industrial upgrading remains the key to industry development. Enterprises still need to increase their research and development investment in energy conservation, environmental protection, intelligence, and other areas to improve product added value and competitiveness, in order to meet the higher requirements of the global market for refrigeration products. For example, developing more efficient refrigeration technologies and energy-saving equipment, exploring the application of new environmentally friendly refrigerants, and increasing research and development efforts for intelligent refrigeration products. Industrial chain restructuring: Previously, in order to avoid US tariff barriers, some Chinese refrigeration companies established production bases overseas. After the tariff adjustment, companies may reassess the layout of their overseas production bases. Some companies that build factories overseas may adjust their production plans and supply chain layouts based on actual conditions such as local production costs, market demand, policy environment, etc. At the same time, companies may also strengthen cooperation with domestic upstream and downstream enterprises, optimize domestic supply chains, and improve overall operational efficiency.