The Impact of Trump's Tariff War on Sauna Companies' North American Exports

Since its inception, the Trump administration's tariff policy has gradually escalated into a trade war with global repercussions. As sauna room companies that rely on international trade (especially Chinese manufacturers or exporters involved in the North American market), their export costs, supply chain stability and market competitiveness have been significantly impacted.

The following is an analysis of the specific impact of the tariff war on the North American exports of sauna room enterprises:

1. Tariffs directly push up export costs and weaken price competitiveness

The Trump administration has imposed high tariffs on Chinese exports to the U.S. through the International Emergency Economic Powers Act (IEEPA) and the “reciprocal tariff” policy. By 2025, the average tariff on Chinese goods has jumped from 11.04% to 31.04%, and may even rise to 68% in extreme cases.

Rising costs of sauna core raw materials: sauna manufacturing relies on materials such as steel, wood, and electronic components. For example, the U.S. has imposed a 25% tariff on imported steel, which has led to a significant increase in raw material sourcing costs for Chinese exporters. If sauna room companies use local Chinese steel, the combined tax rate of their products exported to the U.S. will be significantly higher due to the superimposed tariffs, and the end price increase may reach 6%-15%.

Increased logistics and surcharges: The U.S. levies port charges on Chinese vessels ($50 per net ton), further raising cross-border transportation costs. If sauna companies export by sea, logistics costs may increase by 10%-20%, compressing profit margins.

2. Increased risk of supply chain disruption in North America

The highly integrated supply chain in the North American market is under pressure to reconfigure due to tariff policies, and the cross-border production model of sauna room enterprises has been challenged:

Re-export trade between Mexico and Canada is blocked: many Chinese companies are re-exporting through Mexico or Canada to avoid tariffs, but the feasibility of this path is reduced after Trump imposed a 25% tariff on Mexican and Canadian goods. For example, sauna products assembled in Mexico for re-export may be additionally taxed due to rules of origin (e.g., USMCA requires 75% North American value content).

Delays in supply of key components: If sauna companies rely on U.S.-based electronic controllers or heating elements, supply chain disruptions caused by tariffs could lengthen lead times. For example, after the U.S. tax increase on semiconductors in China, the procurement cost of related components increases, indirectly affecting the production schedule of the whole machine.

3. Shrinking market demand and alternative competitive pressure

After the tariffs were transmitted to the consumer side, North American customers' price sensitivity increased, leading to structural changes in demand:

Consumers turn to local brands or low-priced substitutes: U.S.-based sauna manufacturers (e.g., Sauna360 or InfraredSauna) may take advantage of the tariff protection to expand their market share. Meanwhile, low-priced substitutes (e.g., simple sauna equipment produced in Southeast Asia) are re-exported into the U.S. through low-tax countries, further squeezing the market space of Chinese companies.

Increased differentiated competition in the high-end market: If sauna enterprises focus on high-end far-infrared products, they need to offset tariff costs through technological innovation (e.g., energy-saving design, intelligent temperature control), or else it will be difficult to maintain price premiums. For example, Tesla has responded to tariff pressure through technological upgrades, and similar strategies can be drawn upon.

4. Policy uncertainty and long-term strategic adjustment

The Trump administration's tariff policy is highly unpredictable, and companies need to frequently adjust their strategies to address unexpected risks:

The game of tariff exemptions and temporary reprieve: for example, in February 2025 the US had a 30-day moratorium on tax increases on Mexico in exchange for its cooperation on border control. Sauna room enterprises need to pay close attention to policy dynamics and flexibly adjust inventory and order cycles.

Supply chain diversification and localization layout: some enterprises have tried to set up factories in Vietnam or Mexico, taking advantage of the low local tariffs to export to the United States. For example, a Chinese sauna equipment manufacturer has set up an assembly plant in Nuevo Leon, Mexico, to increase the North American value content to more than 75% in order to comply with USMCA duty-free conditions.

5. Countermeasures and Escalation of Trade Barriers

China's counter tariffs against the U.S. (e.g. 15% on coal, LNG) may trigger a chain reaction:

Double cost pressure: If sauna companies also rely on the US to import raw materials (e.g., specialty woods), Chinese countermeasures will increase sourcing costs. For example, enterprises relying on U.S. lumber face a 10%-20% cost increase after China raises taxes on U.S. corn in 2025.

Risk of WTO dispute resolution mechanism: California has filed a lawsuit on the legality of Trump's tariffs, and if the court rules that the tariffs are invalid, companies may face the risk of a policy rollback; conversely, if China wins at the WTO, the U.S. may be forced to adjust the tariffs, but with a long implementation cycle.

Suggestions for Coping Strategies

1. Optimize supply chain layout: diversify risks through “China+1” model (e.g., setting up factories in Southeast Asia), or establish cooperative relationships with local suppliers in North America to reduce tariff impact.

2. Enhance product value-added: Focus on technological upgrading of far-infrared steam rooms (e.g. energy-saving certification, intelligent modules), and maintain premium space through differentiated competition.

3. Utilize tariff exemption clauses: Apply for tariff exemptions for specific products (e.g., healthcare sauna equipment) or circumvent some of the tariffs through re-export trade compliance.

4. Enhance market diversification: explore emerging markets such as Europe and the Middle East to reduce dependence on a single market in North America.

Conclusion

Trump's tariff war on the North American exports of sauna room enterprises constitute a multi-dimensional impact, but it also forces the industry to accelerate technological upgrading and globalization layout. Enterprises need to make systematic adjustments in cost control, supply chain resilience and market strategy in order to realize sustainable growth in the context of high trade barriers.