Global brands respond to rising costs and policy changes as local market braces for impact
Shanghai, May 11, 2025 – The Chinese industrial sector is experiencing a significant shift as several major international bearing and component manufacturers announce sweeping price increases, citing mounting geopolitical tensions and economic pressures.
SKF (Sweden), NTN and NSK (Japan), and Schaeffler (Germany) have all issued official notifications of price hikes, marking a coordinated adjustment to the new realities shaping global trade and manufacturing. The editorial review of these announcements reveals that the companies are grappling with surging operational costs and policy-driven disruptions.
SKF attributed its 8–10% price increase for new orders to the recently introduced customs duties on U.S. goods, which came into effect on April 11. Japanese manufacturers NTN and NSK cited inflationary pressures in raw material costs within Japan, resulting in an 8% increase on product prices, scheduled to take effect in May and June respectively. Meanwhile, Schaeffler pointed to escalating production expenses, stating that the price revisions are part of a broader effort to ensure a “fair pricing policy.”
Notably, Schaeffler has taken a firm stance by applying new pricing to all pending and unfulfilled orders, signaling a clear intention to align its global pricing strategy. By contrast, SKF’s notice applies primarily to goods still undergoing customs processing, allowing some flexibility for existing agreements.
Despite these price hikes, the manufacturers have emphasized their commitment to maintaining strong relationships with Chinese customers. Schaeffler’s contractual terms, which specify arbitration under Shanghai jurisdiction, underscore the importance of legal alignment and long-term engagement with the Chinese market — a move that could set a benchmark for future industry disputes.
The market’s response has been swift. Large corporations are reportedly renegotiating long-term supply agreements, while mid-sized enterprises are actively exploring domestic alternatives. Yet, according to experts, substituting imported high-precision bearings remains a challenge due to the limited competitiveness of local options.
Industry analysts foresee three potential trajectories for the market:
- Escalation:Continued tariff increases could lead to further price surges and a greater shift toward local suppliers.
- Stabilization:A steady environment might enable the market to adjust through revised logistics and pricing models.
- Consolidation:Re-evaluation of supply contracts is expected, accompanied by increased competition between global firms and emerging Chinese manufacturers.
These developments are not seen as short-term turbulence. Rather, manufacturers appear to be pricing in long-term risks associated with future trade policy shifts — a signal that the current disruptions are part of a broader structural transformation.
The era of aggressively low pricing in China’s industrial component market appears to be drawing to a close. As the landscape evolves, success will depend on operational agility, import substitution capacity, and constructive supplier-buyer collaboration. For now, local manufacturers remain largely silent — a silence that raises questions about their next move in an increasingly complex global trade environment.
source: prompkt
