Steel and aluminum tariffs drive up costs of bolts, nuts, etc.

Scripps News reports: U.S. tariffs on steel and aluminum are causing the costs of small hardware items such as bolts, nuts, and nails to rise. A marine fastener distributor stated that the cost increase has reached 30%–50%. Scripps News

Why it's important: 

• Steel and aluminum are key raw materials for manufacturing most fasteners. 

• The rise in raw material costs will squeeze manufacturers' profits and push up end prices. 

• It will have a knock-on effect on industries that use a large number of fasteners, such as construction projects, manufacturing, and the automotive industry.

Implications for you (if you are a purchaser, manufacturer, or agent): 

• It is necessary to predict cost increases in advance, especially when raw materials come from countries/regions affected by tariffs. 

• Consider locking in long-term procurement contracts or looking for alternative material sources. 

• Consider cost fluctuation clauses in quotations or contracts.

 

 

1. China's Fastener Industry Accelerates Transformation toward High-end and Intelligent Development

It is reported that China's fastener industry is shifting from "quantitative accumulation" to "qualitative improvement". It is estimated that by 2030, China's share in the global fastener market will reach approximately 54%.

The government has invested about 12.7 billion yuan in the R&D of key basic components in 2025, with key focuses including titanium alloy fasteners and high-strength materials.

The automation rate on the manufacturing side and the penetration of intelligent inspection systems have increased. For instance, the penetration rate of automatic assembly lines in a certain factory rose from 21% in 2022 to 35% in 2025.

This trend indicates that if your procurement or cooperation partners are based in China, it is advisable to pay attention to whether they possess the following capabilities: high-strength specifications (e.g., grade 12.9 or above), import substitution capacity, and intelligent production capacity.

2. Slowing Export Growth Coupled with Escalating External Challenges

As one of the world's largest producers and exporters of fasteners such as anchors and sleeve anchors, China has witnessed a slowdown in export growth. For example, a report points out that despite the large export scale, growth has been affected by factors including geopolitics, tariff barriers, and rising transportation costs.

In the first quarter of 2025, the export volume of fasteners from Taiwan reached 327,100 tons, a year-on-year increase of approximately 3.37%, while the average export unit price dropped by about 2.82% year-on-year. This shows that although the export volume has increased slightly, the price and profit margins are under pressure.

Amid the overall Asian export environment, factories are confronted with three major challenges: advance order delivery requirements, inventory pressure, and market switching costs.

3. Significant Changes in Trade Policies and Regional Cooperation

In October 2025, China and the Association of Southeast Asian Nations (ASEAN) signed an upgraded Free Trade Agreement (FTA), aiming to strengthen interconnection in the fields of manufacturing, supply chains, and the green economy.

Meanwhile, the United States has imposed higher tariffs on exports of Chinese goods and their components (including steel, aluminum products and assemblies), which has directly impacted the fastener supply chain.

These changes mean that Asian fastener exporters are increasingly adopting strategies of "prioritizing intra-regional supply chains" and "avoiding excessive reliance on a single export market".

 

Scripps News reports: U.S. tariffs on steel and aluminum are causing the costs of small hardware items such as bolts, nuts, and nails to rise. A marine fastener distributor stated that the cost increase has reached 30%–50%. Scripps News

Why it's important: 

• Steel and aluminum are key raw materials for manufacturing most fasteners. 

• The rise in raw material costs will squeeze manufacturers' profits and push up end prices. 

• It will have a knock-on effect on industries that use a large number of fasteners, such as construction projects, manufacturing, and the automotive industry.

Implications for you (if you are a purchaser, manufacturer, or agent): 

• It is necessary to predict cost increases in advance, especially when raw materials come from countries/regions affected by tariffs. 

• Consider locking in long-term procurement contracts or looking for alternative material sources. 

• Consider cost fluctuation clauses in quotations or contracts.

 

 

1. China's Fastener Industry Accelerates Transformation toward High-end and Intelligent Development

It is reported that China's fastener industry is shifting from "quantitative accumulation" to "qualitative improvement". It is estimated that by 2030, China's share in the global fastener market will reach approximately 54%.

The government has invested about 12.7 billion yuan in the R&D of key basic components in 2025, with key focuses including titanium alloy fasteners and high-strength materials.

The automation rate on the manufacturing side and the penetration of intelligent inspection systems have increased. For instance, the penetration rate of automatic assembly lines in a certain factory rose from 21% in 2022 to 35% in 2025.

This trend indicates that if your procurement or cooperation partners are based in China, it is advisable to pay attention to whether they possess the following capabilities: high-strength specifications (e.g., grade 12.9 or above), import substitution capacity, and intelligent production capacity.

2. Slowing Export Growth Coupled with Escalating External Challenges

As one of the world's largest producers and exporters of fasteners such as anchors and sleeve anchors, China has witnessed a slowdown in export growth. For example, a report points out that despite the large export scale, growth has been affected by factors including geopolitics, tariff barriers, and rising transportation costs.

In the first quarter of 2025, the export volume of fasteners from Taiwan reached 327,100 tons, a year-on-year increase of approximately 3.37%, while the average export unit price dropped by about 2.82% year-on-year. This shows that although the export volume has increased slightly, the price and profit margins are under pressure.

Amid the overall Asian export environment, factories are confronted with three major challenges: advance order delivery requirements, inventory pressure, and market switching costs.

3. Significant Changes in Trade Policies and Regional Cooperation

In October 2025, China and the Association of Southeast Asian Nations (ASEAN) signed an upgraded Free Trade Agreement (FTA), aiming to strengthen interconnection in the fields of manufacturing, supply chains, and the green economy.

Meanwhile, the United States has imposed higher tariffs on exports of Chinese goods and their components (including steel, aluminum products and assemblies), which has directly impacted the fastener supply chain.

These changes mean that Asian fastener exporters are increasingly adopting strategies of "prioritizing intra-regional supply chains" and "avoiding excessive reliance on a single export market".