Analysis of the impact of the US tariff increase on oral tobacco exports

The US tariff increase policy has a significant impact on the global oral tobacco trade pattern. This article will deeply analyze the impact of this policy change from three dimensions: market environment, corporate response and industry trends.

1. Changes in the market environment
Tariff costs have risen sharply. The United States has imposed a 25% tariff on Chinese oral tobacco products, which has directly led to a 30%-40% increase in the landed cost of products. Market share has been squeezed. From January to June 2023, China's oral tobacco exports to the United States fell by 45.3% year-on-year. The competitive landscape has changed. Southeast Asian manufacturers have seized market share with tariff advantages. Malaysia's exports to the United States increased by 62.5% year-on-year.

2. Enterprise response strategies
Supply chain adjustment has become an inevitable choice. Some enterprises have transferred their production bases to ASEAN countries such as Vietnam and Indonesia to take advantage of the preferential tax rates of the Regional Comprehensive Economic Partnership (RCEP). Product structure optimization is imperative. Enterprises have increased their investment in the research and development of high value-added products, and the proportion of new nicotine bag products has increased to 35%. The market diversification layout has accelerated, and enterprises have increased their efforts to explore emerging markets such as the EU and the Middle East. Sales in the European market increased by 28.6% year-on-year.

3. Industry development trends
Increasing investment in technological innovation, the industry's R&D investment in the first half of 2023 increased by 40.2% year-on-year, with a focus on breakthroughs in new nicotine salt preparation technology. Quality standards continue to improve, companies generally establish ISO9001 quality management systems, and products pass international certifications such as FDA and PMTA. The global supply chain reconstruction is accelerating, forming a new pattern of "globalization of raw materials, regionalization of production, and localization of sales".

Although the US tariff increase policy has an impact on China's oral cigarette exports in the short term, it has also forced the industry to transform and upgrade. Companies need to actively adjust their strategies and enhance their international competitiveness through measures such as technological innovation, market diversification and supply chain optimization. In the long run, this will drive China's oral cigarette industry towards high-quality development and occupy a more advantageous position in the global market.