China’s New Aluminum Foil Export Tax Policy: Impacts & Implications for 2025
On November 15, 2024, China’s Ministry of Finance issued an announcement , to adjust the export tax rebate policy. The policy cancels the export tax rebates for 59 products, including aluminum foil that our company are producing. The full announcement is below:
https://szs.mof.gov.cn/zhengcefabu/202411/t20241115_3947628.htm
The new policy will take effect on December 1, 2024, and our company will face three main scenarios:
- Existing signed orders we have to ship before the end of November.
- If we cannot complete and ship the signed orders before November 30, these orders will incur substantial losses.
- Since December 1, our quoted prices will increase by at least 15% compared to the current level
From December 2024 to February 2025, the market will be highly volatile, and export order volumes will decline significantly. It remains uncertain how long it will take for the international market to adapt to the price adjustment.
During his first presidential term, the elected US President Trump frequently accused the Chinese government of providing excessive subsidies to steel and aluminum products and threatened to increase tariffs on these products. China’s new tax rebate policy may serve as a favorable bargaining chip in trade negotiations after January 20 of next year.
Additionally, the European Union’s anti-dumping policy against Chinese aluminum foil, which has been in effect since September 2022, may be reconsidered, as China’s decision to remove subsidies for aluminum foil could influence the EU’s stance on this long-standing policy.
In 2025, foil men ,keep fighting!!!