The impact of the Trump administration's tariffs (especially the "301 tariffs" on China) on candle exports should be analyzed in combination with specific product categories, supply chain structure and market substitution capabilities. Here are the specific impacts and coping strategies:
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### ** 1. Background of tariff policy * *
- ** 301 Tariff Scope * *: Since 2018, the United States has imposed additional tariffs of 7.5% to 25% on four batches of about us $370 billion of Chinese goods. Candles (HS code 3406.00) has been included in the third batch of additional tax list, and the tax rate has risen from 10% to 25%.
- ** Exemption * *: Some candle companies have applied for tariff exemption, but very few cases were approved, and the exemption policy has expired at the end of 2020.
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### ** 2. Direct impact: cost and competitiveness * *
- ** Rising export cost * *: The 25% tariff directly leads to the increase in the terminal price of Chinese candles in the United States, weakening the price competitiveness.
* * Example * *: If the ex-factory price of a candle is $1, the original import cost is about $1.20 (including freight, insurance, etc.), the cost will increase to $1.50 after the 25% tariff, and the retail price may rise from $2 to $2.50.
- ** Order transfer * *: American importers turn to non-tariff countries such as Vietnam, India and Mexico, or support local candle manufacturers (such as Yankee Candle).
* * Data * *: In 2020, China's candle exports to the US fell by 18% year on year, while Vietnam's exports of candles to the US increased by 27% in the same period.
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### ** 3. Industrial chain response strategy * *
- ** Capacity relocation * *: Some Chinese enterprises have set up factories in Vietnam and Indonesia, and take advantage of local cheap labor and low tariffs on the US (Vietnam has only a 3% tariff on candles in the US).
- ** Product upgrade * *: Turn to high value-added products (such as scented candles, environmentally friendly soybean wax), and offset the tariff cost through the brand premium.
- ** Supply chain optimization * *: Negotiate with US importers to share tariffs (such as "FOB to onshore price"), or send direct mail to American consumers through cross-border e-commerce (such as Amazon) (lower tariffs on small parcels).
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### ** 4. Analysis of US market resilience * *
- ** Rigid demand * *: Candle pproduct is a high-frequency consumer goods in the United States, with an annual market size of about 3.4 billion US dollars (2023), a household penetration rate of over 70%, and holiday (Christmas, Thanksgiving) demand accounts for 40%, which is difficult to be completely replaced in the short term.
- ** Local production bottleneck * *: The American candle manufacturing industry relies on China's paraffin raw materials (accounting for 65% of imports), and the labor cost is high, so it is difficult to expand production quickly.
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### ** 5. Long-term trends and substitution risks * *
- ** Policy continuity * *: If Trump takes office again and expands tariffs, it could further squeeze China's share of candle exports.
- ** Alternative energy shocks * *: LED lighting popularization and environmental protection policies (such as the ban on paraffin candles in California) or reduce the demand for traditional candles, but the demand for incense and decoration remains stable.
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### *6. Corporate advice * *
- ** Diversified market * *: Develop non-US markets in Europe (prefer green candles), Middle East (religious ritual demand) and Africa (basic lighting candle demand).
- ** Compliance and certification * *: Obtain American FDA certification, environmental protection labels (such as "lead-free cotton core"), to avoid quality barriers.
- ** Digital marketing * *: Promote the brand of "Chinese design + overseas production" through TikTok and Instagram to avoid the tariff label.
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### ** Conclusion * *
In the short term, Trump tax increase significantly pushed up the export cost of Chinese candles, forcing the industrial chain to move out or upgrade; In the long term, the demand for cost-effective candles in the US market still exists, but it needs to be rebuilt through "diversification of origin + high-end products". Enterprises need to pay dynamic attention to the policy changes in China and the United States, and to adjust the supply chain and market strategies flexibly.
Shijiazhuang zhongya candle co ltd ,a candle manufacturer since 1990
Mainly produce :tealight candle ,stick candle ,pillar candles ,scented candle ,paraffin wax
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