I. Impact of Tariff Shocks

Rising Raw Material Costs
Increased import tariffs have led to higher prices for key intermediates such as methylchlorosilane and hydrogen chloride, placing cost pressure on downstream silicone products.

Compressed Export Margins
Tariff increases in export markets—particularly in regions like Europe and North America—on products such as silicone oils and resins have weakened the global price competitiveness of Chinese-made silicones.

Supply Chain Disruptions
Enterprises are compelled to reassess supply chain strategies, including relocating production to Southeast Asia or sourcing alternative raw materials and markets.

II. Strategies & Development Trends

Transition to High-Value-Added Products
Development of functional silicone materials is accelerating, including:

• Fluorosilicone oils

• Organically modified silicone resins

• Medical-grade and cosmetic-grade silicone oils
  These high-tech, high-margin products help mitigate the impact of tariffs on low-end commodity silicones.

Growth of Domestic Demand
China’s downstream industries—including electronics, automotive, personal care, and new energy—continue to show steady growth, offering expansion opportunities for silicone applications.

Green and Sustainable Development
Low-VOC and environmentally friendly organosilicone products are gaining attention. Environmental regulations are driving product upgrades and green transformation.

Localization and Import Substitution
Product categories that have relied heavily on imports are now advancing toward domestic production, fostering independent innovation and technological self-sufficiency.