February 2025 US Tariff Impact on HTS codes 5401 and 5402 for synthetic yarns and fibers
Executive Summary
In February 2025, tariffs on products under HTS codes 5401 (man‐made filament yarns) and 5402 (staple fibers) went into effect. These materials are critical to a variety of industrial applications including the manufacture of water blocking fibers and coatings for fiber optic and data cables. The tariffs are expected to:
- Increase the cost of imports—particularly those sourced from Canada and China by 25 percent and an additional 10 percent respectively.
- Stimulate interest in bolstering domestic production if cost competitiveness can be achieved.
- Encourage importers to consider increased local or domestic sources and alternative sourcing from other countries.
This report details import volumes (in metric tons) by origin country and discusses how these changes might affect the U.S. supply chain and sourcing strategies.
Background on HTS Codes 5401 and 5402
- HTS 5401: Covers synthetic filaments and multifilament yarns not packaged for retail sale. These materials are key as binder components and for use in industrial applications such as reinforcing cable structures.
- HTS 5402: Covers synthetic staple fibers, which are used in a range of products from nonwovens to reinforcement materials in various cable applications.
Tariff increases on these codes can have cascading effects through the industrial textiles and cable manufacturing sectors.
Trade Flows Data: Imports into the U.S.
Below is a summary of the most recent import volumes for products under HTS 5401 and 5402, expressed in metric tons (MT), by country:
- China: 77,000 MT
- Vietnam: 54,812 MT
- South Korea: 31,569 MT
- India: 24,514 MT
- Indonesia: 18,629 MT
- Turkey: 16,139 MT
- Taiwan: 10,946 MT
- Mexico: 35,000 MT
- Canada: 42,000 MT
Sources: U.S. Census Bureau, Foreign Trade Division (2023 Data), U.S. International Trade Commission (USITC) DataWeb,U.S. Customs and Border Protection (CBP) Import Data (2023)
Impact of the February 2025 Tariffs
Cost Implications for Importers
- China: With 77,000 metric tons imported from China, products under HTS 5401 and 5402 will face significant cost increases due to tariffs. Importers will need to manage higher landed costs and may explore diversifying their sourcing.
- Alternative Suppliers:
- Vietnam (54,812 MT) and South Korea (31,569 MT): These countries represent sizeable alternative sources. Importers may shift portions of their orders to these markets if tariff structures are more favorable.
- India (24,514 MT), Turkey (16,139 MT), Indonesia (18,629 MT), and Taiwan (10,946 MT): Although these volumes are lower compared to China, they provide additional options for reducing dependency on a single source and mitigating overall tariff impacts.
Supply Chain Reconfiguration
- Short-Term Adjustments: Importers may reallocate orders among these regions to minimize the tariff burden. For instance, shifting more volume from China to Vietnam or South Korea could help balance cost increases.
- Long-Term Strategies: Sustained tariff pressures might encourage companies to invest in regional warehousing, develop longer–term supply agreements, or even pursue domestic production initiatives to secure a more stable supply chain.
Broader Economic Considerations
- Price Pass–Through: Increased raw material costs are likely to be passed on to downstream manufacturers (e.g., cable producers), potentially affecting overall product pricing.
- Market Dynamics: Smaller importers might be less able to absorb increased costs, potentially leading to industry consolidation or giving larger players enhanced bargaining power.
U.S. Domestic Supply Chain Alternatives
Existing U.S. Production Capabilities
- Current Capacity: U.S. domestic production of synthetic filament yarns and staple fibers under these HTS codes is limited relative to the volume required. Although several facilities produce specialty fibers for industrial use, domestic capacity remains a fraction of total U.S. demand.
- Recent Investments: Some U.S. manufacturers have announced plans to modernize their production lines to capture more market share. However, domestic production costs tend to be higher due to labor and energy expenses.
- Niche Strengths: U.S. producers often excel in specialized or high–performance fiber production. Scaling up to meet broader volume demands will require significant capital investment and time (typically 12–24 months).
Regional and Collaborative Sourcing
- Near–Term Alternatives: In the short term, increased sourcing from alternative international suppliers (Vietnam, South Korea, India, Turkey, Indonesia, and Taiwan) may provide the best balance of cost, quality, and lead times.
- Collaborative Ventures: Joint ventures or strategic partnerships between U.S. firms and international suppliers could offer more resilient supply chains, improved cost predictability, and faster response times.
Conclusion
The February 2025 tariffs on products under HTS codes 5401 and 5402 are expected to significantly impact the U.S. import landscape. With China supplying 77,000 MT and substantial volumes imported from Vietnam (54,812 MT) and South Korea (31,569 MT), the tariff increases will lead to higher costs and potentially drive importers to diversify their sources. Alternative suppliers from India, Turkey, Indonesia, and Taiwan—while offering lower volumes—provide additional avenues to mitigate tariff impacts.
Short-term supply chain adjustments will likely favor diversification among these international sources, while long-term strategies may include increased domestic production despite its higher cost structure. Stakeholders should continue to monitor trade policies and market shifts to refine sourcing strategies and maintain supply chain resilience.
Sources: U.S. Census Bureau, Foreign Trade Division (2023 Data), U.S. International Trade Commission (USITC) DataWeb,U.S. Customs and Border Protection (CBP) Import Data (2023)
This report is intended for internal analysis by industry stakeholders and product engineers to assist in strategic planning and supply chain management. Interested in a high-quality sourcing partner with US domestic manufacturing? Click below to get in touch!