How China’s Fitness Equipment Industry Can Navigate U.S. Tariffs Without Overreacting

Recent Developments: Heightened Anxiety Amid Tariff Increases

Recently, the United States raised tariffs on Chinese exports, creating widespread anxiety and confusion among exporters, especially in the fitness equipment sector. While the Chinese government has responded with calm determination, fitness equipment manufacturers and exporters are facing more immediate questions:

• How long will these high tariffs last?

• When will U.S.-China trade conditions normalize?

• What is the long-term outlook for China's fitness equipment manufacturing sector?

I. Current Situation: Short-Term Turbulence Is Unavoidable

The recent tariff hikes have already led to shipment delays, postponed or canceled orders from U.S. clients, and significant cash flow pressure for Chinese fitness equipment exporters. While these disruptions are painful, it is important to understand that this turbulence is unlikely to last long.

Both China and the U.S. are currently locked in a phase of negotiation and power-testing. Although the trade war harms both economies, the immediate impact on the U.S. appears more severe. Chinese exports include vital consumer goods and industrial components, and when U.S. inventories deplete — likely within the next one to two months — the U.S. could face sharp price increases and major supply chain disruptions, forcing political concessions.

II. Mid-Term Outlook: Tariff Reductions and Market Recovery

Given the economic realities on both sides, it is highly likely that formal negotiations will occur within the next two months, leading to a reduction in tariffs. While the exact percentage cut is uncertain, a compromise appears inevitable, and a relatively stable trade policy environment is expected over the next few years.

Once tariffs are lowered or clarified, American buyers will likely rush to replenish inventories, causing a surge in orders for Chinese manufacturers. Although higher tariffs may initially push up retail prices and dampen consumer sentiment, the demand for fitness equipment remains strong and any slowdown in purchasing behavior is expected to be temporary.

III. Long-Term Trends: Stronger Trade Barriers and Deeper Decoupling

Looking over a 5- to 15-year horizon, the international trade environment will likely become more unpredictable. The global trend toward "de-globalization" and rising trade barriers will create long-term challenges for Chinese manufacturers, including the fitness equipment industry.

Therefore, companies must strengthen their strategic planning, invest more heavily in independent R&D, improve supply chain management, and enhance their global competitiveness to better withstand future market volatility.

IV. Special Focus: Why Southeast Asia Cannot Replace China Yet

While some believe Southeast Asia will replace China as the world's fitness equipment manufacturing hub, this scenario is unrealistic for the foreseeable future.

Currently, countries like Vietnam lack the mature industrial clusters and sophisticated production systems needed to fully support the fitness equipment industry. Although major players like Johnson Health Tech and iFIT have established production bases in Vietnam, their cases are unique:

• Johnson Health Tech relies on its own mature product lines, strong internal R&D, and closed-loop supply chains to operate independently.

• iFIT uses OEM contractors for simple assembly work in Vietnam, while critical product design, quality control, and key components remain firmly under its U.S. management.

Beyond these exceptions, Vietnam's local fitness equipment industry remains underdeveloped, with weak technical capabilities and minimal supply chain depth. Most Vietnamese factories can only handle simple, large-volume OEM orders and still depend heavily on client-provided technology and support.

In contrast, China has spent the past 30 years building a complete, highly competitive fitness equipment ecosystem, moving from basic OEM production to ODM development, with increasing numbers of Chinese brands now entering the global market (albeit in early stages). China's accumulated manufacturing expertise, supply chain efficiency, and ability to handle diverse and complex orders remain unmatched for now.

V. Conclusion: Understand the Reality, Plan for the Long Term, and Act with Confidence

While short-term uncertainties caused by tariffs are inevitable, companies should not overreact or fall into excessive pessimism. In the mid-term, trade conditions are expected to stabilize, and demand for fitness equipment will remain solid.

Over the long term, however, global trade will likely become more challenging, and Chinese manufacturers must prepare by reinforcing core capabilities, upgrading supply chains, and developing strategic flexibility.

Each company must assess its own situation carefully, find a precise market positioning, leverage its available resources wisely, and craft a development strategy suited to its own strengths. Industry collaboration, communication, and collective resilience will be essential for facing future challenges together.

This article aims to help fitness equipment industry players face current challenges with rational thinking and long-term vision, instead of unnecessary anxiety.

(Disclaimer: The views expressed are for informational purposes only and should not be construed as investment advice.)