The impact of the European economic downturn and on China’s exports of daily necessities (including cookware)
1. Demand elasticity characteristics
Cookware is a necessity of life, and the demand elasticity is low. Even as Europe’s economy weakens, its underlying demand remains relatively stable. However, high-end cookware (such as high-priced non-stick pans, smart kitchen appliances) may be hit by the contraction of consumer budgets, and low-end products are less affected.
2.Substitution effect and consumption degradation
The economic downturn is likely to drive consumers to more cost-effective Chinese products, especially in traditional cookware manufacturing markets such as Germany and France.
If local European brands raise prices, it may provide market share growth opportunities for Chinese cookware.
3. Supply chain and cost transmission
High energy prices in Europe have led to rising local production costs, and the cost advantage of China’s supply chain may be further highlighted.
But logistics costs, such as higher shipping costs due to the Red Sea crisis, could erode some of the price advantage.
4. Data verification
Eurozone GDP growth slowed to 3.5% in 2022 and is expected to be less than 1% in 2023, but China’s daily necessities exports to Europe still increased by 4.2% year-on-year (General Administration of Customs data), showing resilience.
The impact of US tariffs on China’s cookware trade
1. Current tariff policy
The United States applies Section 301 tariffs to Chinese cookware (such as stainless steel cookware and cast iron cookware), and the tax rate is generally between 7.5% and 25%.
Some enterprises circumvent tariffs through re-export trade (labeled exports through Southeast Asian countries), but US customs scrutiny is stricter (such as requiring proof of origin).
Since year 2025, the tariffs have been raised to 35% for most cookware products. It undoubtedly increased the pressure on trade between the two sides.
2. Market share change
After tariffs were imposed in 2018, Chinese cookware’s share of US imports fell from 35% to 28% in 2020, but rebounded to 31% in 2023 (US International Trade Commission data), showing that companies partially offset the impact through cost optimization and localization of supply chains (such as setting up factories in Mexico).
Local American brands (such as All-Clad) took the opportunity to raise prices, and the low-end market was partially replaced by Vietnamese and Indian products.
3. Enterprise coping strategy
Production transfer: Establish assembly lines in Southeast Asia and Mexico, and retain core component production (such as coating technology) in China.
Product upgrade: Develop high value-added products (such as environmentally friendly coated cookware) and use differentiation to avoid price competition.
Cross-border e-commerce: Send directly to the United States through Amazon, Temu and other platforms, taking advantage of the duty-free policy for packages under $800 (De Minimis rule).
Strategic suggestions for Chinese cookware exporters
1. Market diversification
Expanding emerging markets such as ASEAN and the Middle East, such as Indonesia and Saudi Arabia, the growth of the middle class drives the demand for cookware.
Participate in tariff reduction under the RCEP framework (such as reducing tariffs on some cookware exports to Japan to zero).
2. Technical compliance upgrade
Comply with EU REACH regulations (chemical safety), US FDA standards (food contact materials).
Develop low-carbon production processes to meet carbon barriers in Europe and the United States.
3. Supply chain resilience construction
In terms of overseas warehouse layout, priority is given to Poland (radiation Europe) and Mexico (North American hub) to reduce logistics risks.
Cooperate with domestic upstream material suppliers (such as Baosteel Special stainless Steel) to develop lightweight and corrosion-resistant materials.
4. Branding and digitization
Promote Chinese cooking culture through TikTok and Instagram, and bind the concept of “healthy eating” (such as oil-less cookware).
Use big data to analyze the needs of European market segments (e.g., Northern Europe prefers cast iron cookware POTS, southern Europe focuses on design sense).
Post time: Mar-10-2025
