In recent years, the trade frictions between China and the United States have continued to escalate, and the 301 tariff policy implemented by the United States against China has been continuously intensified. In April 2025, the "reciprocal tariff" policy implemented by the United States significantly raised the comprehensive tariff rate on Chinese goods to 145%, exerting a profound impact on the global industrial chain pattern. This article focuses on sub-sectors such as glass fiber, carbon fiber, basalt fiber, and aramid fiber, deeply analyzing the short-term and long-term challenges and opportunities brought by the tariff upgrade to China's composite materials industry, and discussing the trade remedy strategies of enterprises and their future development trends. Research shows that although punitive tariffs have led to a rise in export costs and a loss of market share in the short term, in the long run, this policy has accelerated the process of import substitution in the industry, promoted the reconstruction of the supply chain and the diversification of the market layout, and helped China occupy a more important position in the global composite materials value chain.

One、An overview of the United States' Tariff Imposition Policy

In April 2025, the US government implemented new tariff policies on major global economies on the grounds of "trade reciprocity", among which the tariff adjustment on Chinese goods was the most stringent:

Benchmark tariff: Starting from April 5th, a base tariff of 10% will be imposed on all imported goods.

Punitive tariffs: Starting from April 10th, an additional 50% tariff will be imposed on Chinese goods. After adding the original tariff rate, the effective tariff rate for some products is as high as 145%, significantly higher than that of economies such as the European Union and India.

Industry restrictions: Abolish the small tax exemption treatment (originally tax exemption for packages under 800 US dollars), and set higher trade barriers for strategic industries such as new energy vehicles and composite materials. As a countermeasure, China imposed a 125% tariff on US imports, further intensifying bilateral trade tensions and having a significant impact on the import and export pattern of China's composite materials industry.

Table1 The "reciprocal tariff situation" of the major trade deficit economies of the United States

来源：YAHOO,2025.4.24

Under the current global economic situation, the responses of major economies to trade tensions vary. When facing the trade policies of the United States, China has adopted a tough stance and announced the imposition of tariffs as high as 145% on all imported goods originating from the United States. This move reflects China's firm attitude in trade disputes, namely "seeing it through to the end", but at the same time it also indicates that China is willing to solve problems through dialogue and the door is always open. This strategy of China aims to protect its own interests while seeking to reach a mutually acceptable solution through negotiations.

By contrast, while taking countermeasures, the European Union is more inclined to resolve trade disputes through dialogue and consultation. This balanced approach aims to maintain the transatlantic partnership while ensuring that the interests of the European Union are not undermined. The stable development of Japan and South Korea, as well as countries like India, Vietnam and Australia, have shown a more conciliatory attitude. These countries may believe that through reconciliation, further escalation of trade conflicts can be avoided, thereby protecting their own economies.

Overall, when facing trade tensions, all countries are weighing their own interests against the importance of international cooperation. Although the response strategies vary, they all reflect that while safeguarding their own interests, each country is also striving to seek to ease tensions through dialogue and consultation in order to achieve a more stable and sustainable international trade environment.

Two、The impact of the composite materials industry

The move by the United States to impose Section 301 tariffs on China has had a significant impact on China's composite materials industry. Firstly, the additional tariffs have led to the escalation of tariffs on composite material products exported from China to the United States, and the rising costs have weakened the price competitiveness. Some enterprises were forced to raise offshore prices or onshore prices, affecting their market share in the US market. To avoid high tariff barriers, some enterprises are considering relocating their production bases to regions with preferential tariffs, such as Southeast Asian countries, through supply chain transfer or overseas direct investment, in order to take advantage of the Generalized System of Preferences (GSP) or Free Trade Agreements (FTAs) to reduce tariff costs. Furthermore, the trade protectionist policies of the United States may affect the long-term development of China's composite materials industry. Due to export restrictions, some enterprises may reduce their investment in research and development and instead seek market diversification or import substitution strategies, which may slow down the process of industrial upgrading.

However, the tariff measures of the United States have also prompted China to accelerate the adjustment of its industrial structure, promote the development of the domestic circulation economy, and actively expand non-tariff markets, such as the European Union (benefiting from the China-Eu CAI), ASEAN (a member of RCEP), and Africa (the Forum for China-Africa Cooperation FOCAC). Through the effects of origin optimization and trade transfer, China's composite materials industry is expected to reduce its reliance on a single market and enhance its risk resistance capacity. In conclusion, although the 301 tariff brings about a trade suppression effect in the short term, in the long run, it may drive China's composite materials industry to move up the high value-added and global value chain (GVC) upstream, achieving more sustainable development.

Glass fiber

The high tariffs imposed by the United States on Chinese glass fiber have led to an increase in the export FOB price, weakening the price competitiveness. It is expected that China's glass fiber exports will face severe challenges. Data shows that in 2024, the total export volume of glass fiber and its products in China accounted for 26.75% of the domestic total output (7.56 million tons). From the perspective of export regional distribution, the United States is one of the main export destinations for China's glass fiber. According to data from C1 Energy, China's total glass fiber exports reached 2.1188 million tons in 2024, among which 245,700 tons were exported to the United States, accounting for 11.60% of the total exports. The total export volume was 3.029 billion US dollars, among which the export volume to the United States was 405 million US dollars, accounting for 13.37% of the total export volume. The additional tariffs imposed by the United States on China will significantly increase the cost of Chinese glass fiber entering the US market, which will directly reduce the export profits of Chinese glass fiber enterprises. Even if efforts are made to pass on the cost pressure to downstream consumers by raising prices, the price competitiveness of China's fiberglass products in the US market will be weakened, which may eventually lead to the loss of market share in the US. Against such a backdrop, fiberglass enterprises that have production capacity layouts overseas, especially in the United States, will demonstrate obvious advantages.

As a leading enterprise in China's fiberglass industry, China Jushi currently ranks first in global production capacity. Its overseas sales account for approximately 35% of its total sales. It has two overseas production bases in South Carolina, USA and Suez, Egypt, with a total overseas production capacity of 456,000 tons per year, of which the production capacity in the United States is 96,000 tons per year. Compared with other domestic fiberglass enterprises, it is expected that the overseas sales of China Jushi will be less affected by the increased tariffs in the United States. The company can take advantage of its production base in the United States to further increase its market share in the United States.

Carbon fiber

When the tariff countdown in Washington pointed to April 10th, Beijing responded with precisely guided countermeasures: starting from noon on that day, tariffs were imposed on all US imports. Amid the smoke of this "tariff offensive and defensive battle", the trade landscape of carbon fiber, a strategic material, is quietly being restructured. The 104% "tariff nuclear bomb" of the United States against China may seem terrifying, but in the field of carbon fiber, it has encountered a "golden shield" made in China. Before 2020, China's dependence on foreign carbon fibers was relatively high and its self-sufficiency capacity was insufficient. However, with the rapid development of China's carbon fiber industry in recent years, the production capacity has increased significantly, and the dependence on carbon fiber imports has decreased significantly.

Customs data shows that China's self-sufficiency rate of carbon fiber has exceeded 72.78% in 2024. In contrast, China's dependence on carbon fiber imports was as high as 72.22% in 2019. In just five years, China's carbon fiber industry has made an astonishing comeback from relying on imports to achieving self-sufficiency.

Table 2 Statistics on China's Carbon Fiber Import and Export in 2024

Source: Chinese Customs

In 2024, the main sources of carbon fiber imports for China will be Japan, South Korea, Taiwan of China and the United States, accounting for 33.97%, 12.48%, 18.80% and 15.19% respectively. Although the United States accounts for only 15.19% of China's carbon fiber import market, the abnormally sharp increase in imports from the US in the first two months of 2025 indicates the strategic layout of enterprises to get ahead of the tariff window period, mainly importing small filament carbon fibers. However, industry experts believe that this kind of "pulse import" is difficult to sustain because the production capacity elasticity of Asian suppliers such as Toray of Japan and Formosa Plastics of Taiwan, China, is sufficient to fill the short-term gap.

Table 3 Statistics of Carbon Fiber Imports from the United States to China from 2022 to 2025 (Unit: Tons)

Source: Chinese Customs

More profoundly, the structure of China's carbon fiber exports is undergoing a qualitative change, with the proportion of carbon fiber products exported constantly breaking through. Although China's carbon fiber production capacity has grown significantly in recent years and the export volume has increased, the export volume of carbon fiber is relatively small. The main export is carbon fiber products, and they are mainly sold to Northern Europe rather than the United States. The additional tariffs imposed by the United States on China may increase the cost for American enterprises to import carbon fiber and its products. Meanwhile, the decline in international crude oil and other energy prices may weaken the demand for carbon fiber in foreign wind power markets. Despite this, the mutual tariffs imposed by China and the United States have a negligible impact on the import and export of China's carbon fiber products. It is necessary to closely monitor the changes in tariff policies and long-term demand preferences of other countries.

Basalt fiber

On April 2, 2025, the United States announced a new tariff policy, marking a new round of tariff storm, in which sanctions were particularly imposed on China's new energy vehicles. Although the number of new energy vehicles exported from China to the United States is not large, this move reflects the concerns of the United States about the rise of China's new energy vehicles. Chinese new energy vehicles have performed strongly in the European and Southeast Asian markets. By 2024, one out of every four new energy vehicles sold in Europe will be a Chinese brand. Facing the competition for dominance in the global industrial chain, Chinese automakers must break through technological blockades and cost predicaments, and new material technologies such as basalt fiber have become the key. Basalt fiber is a new type of composite material, featuring lightweight and cost advantages. At the same time, it is environmentally friendly and compliant, which helps Chinese new energy vehicles meet the strict environmental protection requirements of markets such as the European Union. As one of the first domestic enterprises to lay out basalt fiber technology, Qianjia Group has achieved significant technological breakthroughs and begun to conduct research and development around the demands of vehicle cabins. Driven by the "dual carbon" strategy, the three core advantages of basalt fiber are highly consistent with the automotive industry's demand for lightweight and recyclable materials. China is committed to promoting basalt fiber to become a key material in the new energy era to build its own core competitiveness.

Aramid fiber

Although China's aramid industry started relatively late, it has developed rapidly and has a high market concentration. As an industry leader, Taihe New Materials has a large production capacity of aramid fibers, a rich variety of product types, and ranks among the top echelon of China's aramid fiber industry. By 2024, its annual aramid production capacity will reach 17,000 tons, accounting for 30.30% of the domestic capacity and ranking second globally. The annual production capacity of para-aramid is 16,000 tons, ranking first in China. Sinochem International mainly focuses on the para-aramid field. Its project was put into operation in 2020 and it is in the second echelon of the industry. In the field of aramid fibers, China's meta-aramid accounts for 40% of the global market, surpassing DuPont of the United States, which once monopolized the market. Meanwhile, in the field of ultra-high molecular weight polyethylene fibers, China's market share exceeds 70%, and even the bulletproof vests of the US military need to use raw materials from China. More than half of the world's textile enterprises rely on raw material supplies from China. The move by the United States to impose tariffs may have adverse effects on itself.

Three、The response strategies and transformation paths of China's composite materials industry

Short-term tactics: Cost control and market diversification

Supply chain regionalization Reconstruction: In the face of the impact of US tariffs, Chinese composite material enterprises have achieved supply chain regionalization by building glass fiber production lines in ASEAN countries such as Vietnam and Malaysia, thereby reducing costs and tariff risks. The abundant resources and cheap labor force in these areas provide favorable conditions for production.

With the zero-tariff policy of RCEP, enterprises can reduce their logistics costs by 15% to 20%. Setting up factories in ASEAN can reduce the cost and time of transporting raw materials from China, avoid direct export tariffs from China when exporting products to the United States, and enhance competitiveness. This not only reduces costs, but also enhances the flexibility of enterprises in the international market and helps them cope with trade protectionism.

Tariff compliance and the application of policy tools: In response to the rising tariff costs, Chinese composite material enterprises actively utilize policy tools and apply for funds and financial support, such as the "Belt and Road" Green Development Fund and the Small and Medium-sized Enterprises International Market Expansion Fund. These funds can cover 30% to 40% of tariff costs, reducing the burden on enterprises.

Enterprises also take advantage of the "Rules of origin accumulation" and transit through Mexican factories to reduce the impact of tariffs. Set up a factory in Mexico and transfer some production links. After the products meet the conditions, they can enjoy the preferential policies of the free trade zone and reduce the tariff costs in the US market. This not only reduces costs, but also expands the international market and enhances global competitiveness.

Medium-term strategy: Technological Breakthroughs and Industrial upgrading

The Chinese composite materials industry is committed to the localization of high-end materials in order to reduce its reliance on imports. By establishing a special fund, the focus will be on the research and development of key materials such as T1000-grade carbon fiber and high-temperature resistant resin, with the goal of increasing the import substitution rate to 60% within three years. T1000 grade carbon fiber is of vital importance in the aerospace and high-end automotive fields due to its high strength and high modulus. Although its production technology has long been monopolized by foreign enterprises, the establishment of the special fund has attracted scientific research talents and funds, helping to break the technological monopoly and achieve domestic production. Meanwhile, promoting the industrialization of 3D printing continuous fiber-reinforced thermoplastic composite technology aims to reduce reliance on traditional molding process equipment and enhance production efficiency and product quality. Combining the rapid prototyping and personalized customization advantages of 3D printing technology with the excellent mechanical properties and corrosion resistance of continuous fiber-reinforced thermoplastic composites will significantly enhance the competitiveness of Chinese enterprises in the high-end materials field.

Downstream application scenario expansion: China's composite materials industry is actively expanding into the new energy vehicle and building integrated photovoltaic (BIPV) markets to cope with the impact of the contraction in the US market. It is estimated that by 2025, the market size of new energy vehicles will reach 800 billion yuan, providing a huge development space for the composite materials industry. Composite materials are used in new energy vehicles for the body, battery packs, interiors, etc., which can reduce weight, improve range and energy efficiency. For instance, carbon fiber composite materials can reduce the weight of a vehicle body by 30% to 50%, enhancing the performance and competitiveness of the car. The BIPV field also holds great potential. With the growth in demand for clean energy, the combination of BIPV technology with solar photovoltaic power generation and buildings has attracted attention. Composite materials in BIPV enhance the performance and reliability of photovoltaic modules, reduce costs, and promote the wide application of the technology.

In the international market, Chinese composite material enterprises are developing lightweight composite materials for railway vehicles, competing for infrastructure construction orders in countries along the "Belt and Road". This initiative brings new opportunities to Chinese enterprises. The demand for infrastructure in the countries along the route is huge, and lightweight composite materials for railway vehicles meet the high-performance requirements. Chinese enterprises take advantage of their technological production strengths to participate in projects along the routes and open up new market Spaces.

Long-term layout: Global Value chain Reconstruction and Institutional Opening-up

Overseas localized production: To better integrate into the global market and reduce trade risks, Chinese composite material enterprises have established composite material product assembly plants in Mexico and Canada. By taking advantage of the USMCA, enterprises can enjoy tax exemption treatment, which provides strong support for their development in the North American market. It is expected that by 2028, these assembly plants will have a production capacity of 5 million tons, capable of covering 70% of the demand in the North American automotive and construction markets. By setting up an assembly plant in Mexico, enterprises can fully utilize the local labor resources and geographical location advantages to reduce production costs. Mexico borders the United States and has convenient transportation, enabling products to be transported to the US market quickly. Through localized production, enterprises can also better understand local market demands, promptly adjust their product structures and production strategies, and enhance their market competitiveness.

Multilateral trade rule game: China's composite materials industry actively safeguards its interests in global trade and participates in the formulation of multilateral rules. Join forces with other economies to file a WTO lawsuit against US tariffs, arguing that they violate the principle of non-discrimination. This move aims to use international rules to prompt the United States to abolish unreasonable tariffs and restore fair trade. Promoting the alignment of RCEP and CPTPP standards and building a global supply chain network of "dual ports and dual channels" is a strategic measure for China's composite materials industry. This is conducive to trade liberalization and economic integration in the Asia-Pacific region, optimizing resource allocation, enhancing the efficiency and resilience of supply chains, reducing trade risks, and strengthening global competitiveness.

Four、Conclusion 

The tariff policy implemented by the United States, through the dual strategies of "tariff barriers" and "technology blockade", has caused short-term troubles and long-term transformation pressure for China's composite materials industry. This industry must take "market diversification, technological autonomy and local production capacity" as its core strategy and achieve a transformation from "cost advantage" to "technology and brand" advantage within a cycle of 5 to 8 years. Looking ahead, with the in-depth implementation of the domestic "dual circulation" strategy and the advancement of the global green and low-carbon transformation, the domestic demand potential of composite materials in fields such as new energy and high-end equipment manufacturing will be continuously released. Coupled with the further expansion of the markets along the Belt and Road Initiative, it is expected that by 2030, the industry will form a new pattern of "contraction in the North American market, expansion in the Asia-Pacific market, and global market balance".