On April 5, 2025, the United States Trade Representative (USTR) issued a notice that the tariff rate on power equipment imported from China will be increased from 7.5% to 35%, effective retroactively from May 1, 2025.

The products subject to the tariff increase include core power equipment such as hydroelectric generating units, transformers, and high-voltage switches, covering 12 tariff headings (HS codes 8502, 8535, 8537, etc.).

In the short term, the U.S. tariff increase will have a certain impact on China's power equipment industry, including a shrinking export market and a decline in corporate profits. However, in the long run, this will prompt China to accelerate the self-reliance and control of its industrial chain, promote technological upgrades and market diversification, and enhance the overall competitiveness of the industry.

At the same time, the U.S. tariff policy may lead to a restructuring of the global power equipment supply chain. Chinese companies need to strengthen cooperation with countries along the “Belt and Road” and other emerging market countries to expand overseas markets.