The Impact of the US - China Economic and Trade Meeting on Candle Jars Exports

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The Impact of the US - China Economic and Trade Meeting on Candle Jars Exports

2025-08-13 11:51:48

According to the "Joint Statement on U.S.-China Economic and Trade Meeting in Stockholm" issued on August 12, 2025, the United States has temporarily suspended the additional 24% tariff on Chinese goods for a period of 90 days, while maintaining the base tariff rate of 10%. In response, China has implemented corresponding reciprocal measures. These policy adjustments are expected to yield the following positive effects on American buyers importing candle jars from China:

 

I. Direct Benefits of Tariff Reduction

 

1. Cost Reduction and Enhanced Price Competitiveness

Glass candle jars, previously subject to a combined tariff rate of 34% (24% additional tariff + 10% base tariff), now face only a 10% tariff. This reduction significantly lowers import costs. For example, Shenzhen Sunny Glassware produces low-end glass candle jars with relatively narrow profit margins. Although the 10% tariff remains a critical threshold for profitability, the temporary cost relief helps alleviate operational pressure and enhances the competitiveness of final product pricing.

2. Increased Orders During the windows of opportunity

The 90-day tariff suspension (August to November 2025) offers a buffer window for US importers, encouraging them to place larger orders. This temporary relief is expected to stimulate consumer demand in the US market.

 

II. Impact on the differentiation between glass and ceramic candle jars

 

1. Glass candle jars: High-Value-Added Products Benefit More

For mid-to-low-end products:

Even with the reduced 10% tariff, profit margins remain under pressure. Companies must rely on economies of scale or strategic transformation to maintain viability.

For high-end products (e.g., high borosilicate glass candle jars):

These benefit from technical advantages such as high heat resistance and superior light transmission. Innovation enables these products to withstand tariff pressures. Sunny Glassware has proactively engaged with US clients, formulated procurement plans for 2026, and leveraged the tariff suspension period to capture market share.

2. Ceramic candle jars: Strengthened Substitution Advantage

Ceramic products were not included in the previous US tariff hikes. This policy continuity reinforces their competitive advantage in terms of tax avoidance. For instance, Sunny Glassware has diversified its offerings by incorporating ceramic candle jars into its product line to mitigate tariff impacts. This strategic shift transforms challenges into opportunities, generating additional value for US customers.

 

III. Corporate Strategies and Long-Term Industry Trends

 

1. Implementation of a Dual-Wheel Drive Strategy

In the short term, enterprises are capitalizing on the tariff suspension to boost exports. In the long term, they are shifting toward high-value-added products. Sunny Glassware, for example, is simultaneously pursuing cost optimization (short-term strategy) and technological innovation (long-term strategy), adopting a "dual-wheel drive" approach to adapt to the new tariff environment.

2. Supply Chain and Market Diversification

Tariff uncertainty has prompted companies to diversify their risks:

Production Layout: Some enterprises are exploring the relocation of production capacity to Southeast Asia; however, the relocation of ceramic candle jars production remains challenging due to its reliance on China's mature supply chain.

Market Expansion: Leveraging the Belt and Road Initiative, companies are seeking to offset the decline in US orders by expanding into emerging markets, such as through buyer engagement at the Canton Fair.

3. Increased Industry Concentration

Leading enterprises are consolidating their market positions through design and technological barriers. Sunny Glassware, with over two decades of export experience, maintains a strict quality standard of destroying 80,000 defective items annually and possesses rapid customization capabilities (e.g., fulfilling 100,000 PCS orders within 72 days). These strengths enhance international customer trust and improve resilience to policy fluctuations.

 

IV. Future Challenges and Opportunities

 

Short-Term Opportunity:

The 90-day tariff suspension presents a critical window for order fulfillment. However, companies should remain vigilant about the potential reinstatement of the 24% tariff after November 2025.

Long-Term Transformation:

The agreement emphasizes resolving structural issues through institutionalized dialogue and phased compromises. Enterprises must continuously enhance technological barriers—such as through eco-friendly materials and intelligent design—to adapt to the sustained 10% tariff regime.

 

The current tariff suspension provides a temporary recovery opportunity for candlestick exporters. Glass candle jars benefit from immediate cost reductions, while ceramic candle jars continue to enjoy substitution advantages. However, long-term sustainability will depend on continuous product upgrades and supply chain optimization. The policy window and institutional consultation mechanism offer valuable time for the industry to undergo the necessary transformation.