VIGA Faucet Manufacturer 
1. Short-Term Export Surge and Order Recovery
Tariff Reductions: The US reduced tariffs on Chinese goods from 145% to 30%, while China lowered tariffs on US imports from 125% to 10%, with a 90-day suspension of an additional 24% tariff. This immediate relief has triggered a “rush-to-ship” phenomenon, as exporters scramble to clear backlogged orders and capitalize on the tariff window.
– Example: Furniture manufacturers in Chengdu and Guangdong have resumed production shifts (e.g., two shifts per day) to meet surging US demand. Companies like Shenzhen Maiqijia Home Furnishing reported receiving Four New Orders In A Single Day, totaling $300,000, with plans to ship eight containers to the US.
– Logistics bottlenecks: Shipping rates for US-bound containers surged by 140% (from $2,500 to $6,000) due to sudden demand, and ports like Yantian expect peak freight volumes next week.
2. Cost Structure Optimization and Profit Margin Recovery
– Lower Tariff Burden: For labor-intensive products like furniture, tariffs now range between 10%–38.8% (down from 104%–145% previously), significantly reducing export costs.
– Example: A $1,000 wooden furniture set previously faced $2,700 in tariffs; post-adjustment, tariffs dropped to ~$300, allowing price competitiveness to rebound.
– Profit margins for SMEs are projected to recover from 1%–3% to 5%–10%, stabilizing cash flow and reducing inventory pressure.
3. Supply Chain Restructuring and Globalized Production
– Nearshoring and Diversification: To mitigate long-term tariff risks, Chinese furniture firms are accelerating “China R&D + overseas assembly” models.
– Companies like MLILY and Kuka Home have established factories in Vietnam and Mexico, leveraging tariff exemptions under trade agreements (e.g., USMCA).
– Modularized customs declarations (e.g., splitting products into low-tariff components) have reduced effective tariffs from 125% to 4.2% for some exporters.
4. Market Diversification and Product Innovation
– Reduced Dependency on the US: While US orders rebound, exporters are actively diversifying into Europe, ASEAN, and the Middle East. For instance, Shenzhen Rilifeng Technology reduced US market reliance from 60% to 10% by expanding into Europe.
– High-Value Product Development: Smart furniture (e.g., voice-controlled sofas, health-monitoring beds) and eco-friendly designs (e.g., formaldehyde-free boards) now account for 30%–35% of exports, attracting tariff
exemptions in markets like the EU.
5. Long-Term Challenges and Strategic Adjustments
– Policy Uncertainty: The 90-day tariff suspension creates a volatile window. Exporters must balance short-term gains with long-term risks, such as potential tariff resumptions or stricter compliance requirements.
– Compliance and Localization**: Stricter US regulations (e.g., CPSC safety standards, Prop 65 labeling) and rising logistics costs necessitate investments in certification (e.g., UL, FCC) and localized branding to retain market access.
Conclusion
The Joint Statement provides a critical reprieve for China’s home furnishing industry, driving immediate order recovery and cost relief. However, exporters must leverage this window to diversify markets, upgrade products, and globalize supply chains to ensure resilience against future trade volatility. Strategic shifts toward high-value innovation and regional trade agreements (e.g., RCEP) will be pivotal for sustained growth.