Trade Wars Reshape Global ACP Market as Tariffs Force Industry Transformation

31 Jul.,2025

The global aluminum composite panel (ACP) trade is undergoing a major shift as escalating tariffs and anti-dumping measures disrupt traditional supply chains. With key markets like India, the U.S., and the EU imposing steep duties on Chinese ACP exports, manufacturers are scrambling to adapt—turning to overseas production, premium products, and emerging markets to stay competitive.

 

1. Tariff Barriers Disrupt Traditional Trade Flows

India’s Anti-Dumping Duties Slam Chinese Exports

In 2020, India imposed anti-dumping duties of up to 273.6% on Chinese ACP, causing exports to plummet by 70% (from 480millionin2019tojust480millionin2019tojust120 million in 2023, per China Customs). Local producers like Alubond India have since expanded capacity by 40%, filling the gap.

Stricter EU & US Regulations Raise Costs

The U.S. maintains 25% tariffs on Chinese aluminum products under Section 301, indirectly raising ACP costs. Meanwhile, the EU enforces tighter CE certification and fire safety standards (EN 13501-1), pushing Chinese suppliers to either upgrade or exit. European brands like Alucobond now dominate 60% of the regional market.


2. Industry Response: Factories Abroad & Premium Products

Southeast Asia Becomes a Tariff Workaround

Chinese ACP giants are relocating production to avoid duties:

  • Yaret Industrial Group is building a 5 million sqm/year ACP plant in Vietnam (opening 2024) to serve Western markets.

  • Jixiang Group acquired a Malaysian factory, slashing EU tariffs from 30% to under 5% via local origin rules.

Shift to High-Value ACP Solutions

With low-end panels squeezed, innovation is accelerating:

  • A2 Fireproof Panels: 30% pricier but compliant with EU/US high-rise safety laws.

  • Solar-Integrated ACP: Combining photovoltaics with cladding for green buildings.


3. Supply Chain Risks & New Challenges

Aluminum Price Volatility

Aluminum coils (50% of ACP costs) face wild swings due to geopolitics (Russia-Ukraine war) and China’s export taxes on bauxite.

EU Carbon Tax Looms

The Carbon Border Adjustment Mechanism (CBAM), fully effective by 2026, may add 10-15% costs to China’s ACP exports.


4. The Future: A Fragmented Global Market

Analysts predict a three-tiered ACP trade landscape:

  • China: Focus on Asia/Africa + high-end panels.

  • West: Reliance on local/EU-Mexico supply chains.

  • Southeast Asia: Hub for mid/low-end panels, competing with India & Turkey.


Expert Insights

“Trade wars are forcing China’s ACP industry to abandon cheap exports and innovate.”
— Li Qiang, Secretary-General, China ACP Industry Association

“Companies must diversify production and embrace automation to survive.”
— Chen Min, Senior Analyst, BloombergNEF


Conclusion

As protectionism grows, the ACP industry’s battleground has shifted from price wars to technology, sustainability, and supply chain agility. For Chinese firms, the path forward hinges on green manufacturing, global footprints, and compliance—or risk being left behind.

(Sources: China Customs, WTO Trade Monitor, Company Filings)