As it is announced today (05/12/2025) the trade negotiation between United States and China has meet to an agreeable point. Both the US and China will dramatically roll back its tariffs on each other’s imports for the initial 90 days. This announcement will come in effect by May, 14th, 2025 and the reciprocal tariff against China will go from 145% to 30%. A more positive outcome as trade war de-escalate. But can supply chains and orders come back to China? The Implications for Flooring Business is still unclear.
United States to Search for Solutions for more Balanced Trade
The US Treasure Secretary has commented that the US does not want to economically decouple from China but are seeking for a more balanced trade deficit. As the trade-war tension de-escalate, more discussions and talks will be executed where better negotiations can be made.
Implications for Flooring Importers in United States
Since the initial reciprocal tariff at was added in April, 14th, flooring importers has been paying over 177% duty for resilient flooring products coming from China. This has tremendously impacted flooring market as flooring wholesalers and distributors are all forced to start sourcing their flooring products from other Asian countries. However, a supply chain transition would take up to 60 to 90 days, so it has a disruptive effect to supply chain efficiency and inventory.
As the reciprocal tariff has eased temporarily, flooring importers will have more time to explore alternative flooring manufacturers across Asia with easing supply chain uncertainties. Particularly with Domotex Asia coming up in May, 26th to 28th where many Asia based resilient manufacturers will be participating.
How Much Duty to Pay as Reciprocal Tariff Tension Eased
| Section 301 Tariff | Reciprocal Tariff | Tax | Total Duty | |
|---|---|---|---|---|
| Importing LVT/SPC Flooring from China to United States | 25% | 30% | 7% | 62% |
Continuous Diversification in Floor Sourcing Supply Chains
While the tariff and trade war situation between US and China has seem eased for now, there is still very much uncertainties in how the two power countries will resolve their trade differences. With such aspects in line, many flooring importers, include the mega brands, would still diversify their supply chains across Asia and South East Asia.
