By Zhang Yiyi
Published: Apr 21, 2025 09:39 PM
Source: https://www.globaltimes.cn/page/202504/1332542.shtml
Many US businesses and consumers reportedly have already felt negative impacts from the US’ sweeping tariffs due to rising prices and supply issues of various consumer products. Yet, the negative impact goes far beyond this – US pet owners could soon see significant challenges in buying food and accessories for their pets, according to Chinese pet industry insiders.
While the US market for pet products appears stable for now due to early stockpiling by distributors in anticipation of the tariffs, significant challenges will emerge in the second half of the year, potentially creating “major trouble” for US retailers and consumers, Liu Xiaoxia, deputy secretary-general of the China Animal Agriculture Association’s pet industry branch and chief editor of the China Pet Industry White Paper, told the Global Times on Monday.
Rising Prices
A significant share of pet accessories – including toys, leashes, and bedding – are manufactured in countries including China, and tariffs on these products would directly push up retail prices, tightening pressure on consumers’ wallets, according to an April report by Petworks.com, a pet care services platform in the US.
Noting various US tariffs against Canada, Mexico and China, Petworks.com said in a post on April 3 that “one area poised to feel the impact acutely is the pet care industry, which could see a notable increase in costs for pet owners nationwide.”
The US imported 313.6 million kilograms of dog and cat food in 2023, with China ranking as the third-largest source at about 21.4 million kilograms, worth about $140 million, according to World Bank data.
With persistent inflation and looming tariffs, the cost of pet ownership in the US continues to rise. According to a report from an online marketplace for pet care, Rover’s True Cost of Pet Parenthood Report 2025, 28 percent of pet owners are struggling to afford pet essentials, while 52 percent worry that tariffs will drive costs even higher.
Such concerns have already translated into actions, as US retailers anticipated potential tariff risks and rushed to stockpile inventory, according to the CEO of a Chinese pet goods supply company surnamed Cheng in Wuhu, East China’s Anhui Province.
US clients have placed orders covering three to six months’ worth of supply well in advance, Cheng told the Global Times, adding that the company’s order volume in the first quarter of 2025 was exceptionally high, reflecting growing concern among US buyers.
Another exporter surnamed Zhang, who specializes in premium smart pet products, such as cat and dog bowls and water dispensers, told the Global Times that due to tariff pressures, his company had to scale back coupons and discounts on US e-commerce platforms, “which, frankly, is just a price hike in disguise,” Zhang said.
Zhang pointed out that the extra costs would inevitably be passed on to American consumers, and that his company has maintained profit margins despite the heavy tariffs, thanks to the high quality and strong brand recognition of its products. “At least we’re not losing money,” he said.
Currently, many US distributors have stockpiled enough Chinese-made pet products to last three to six months, limiting the immediate impact on consumers. However, if tariffs persist, pressure on the US market could intensify, Liu said. The US lacks a fully developed supply chain for pet supplies, and local production costs remain substantially higher. With China’s strengths in quality, cost-efficiency, and capacity, American retailers have limited viable alternatives, Liu said.
Resilient Industry
Meanwhile, Chinese companies, while potentially facing some impact, will remain overall resilient, industry insiders said, pointing to the industry’s advantages and extensive preparation for tariffs by exploring more overseas markets.
Amid a changing global landscape, most Chinese pet supply companies have long diversified their markets globally rather than relying on a single country. Following multiple rounds of US tariff hikes, many have proactively accelerated their global expansion, according to Liu.
For example, high-quality Chinese pet products are gaining ground in Europe. “European markets have higher standards and favor quality suppliers,” said a manager from a Chinese self-owned pet brand. “Many of our products are better aligned with EU regulations, giving us a competitive edge,” the manager, who requested anonymity, told the Global Times.
Zhang also said that around 20 percent of the company’s businesses come from the US, while Southeast Asia remains the core market. Recently, sales in Europe have been rising, and the company will exhibit at a major trade show in Italy in May to further tap into the region, he said. “Europe has over 100 million cats, with around 70 to 80 million cat-owning households, yet smart pet products still have a penetration rate below 1 percent. That’s a massive opportunity,” Zhang said.
Liu noted that some leading firms had already set up satellite factories in countries such as Cambodia and Vietnam. In the first quarter of 2025, exports to emerging markets such as South America and the Middle East posted notable growth.
Domestic Opportunities
In addition to expanding overseas, many Chinese companies are also targeting the domestic market by leveraging e-commerce platform subsidies to unlock new demand. Liu noted that major platforms like JD.com have rolled out 200 billion yuan ($27.4 billion) in targeted subsidies for products hit by US tariffs, with dedicated sections for “export-to-domestic” goods.
Several pet brands are already collaborating with JD.com to boost domestic sales, with the platform beginning to place orders for affected products, Liu said.
Liu added that the latest tariff challenges have prompted businesses to focus on the domestic pet market.
China’s pet industry holds enormous potential and is entering a phase of rapid expansion. According to the 2025 China Pet Industry White Paper, China had over 120 million pets in 2024, and the urban dog and cat market surpassed 300 billion yuan.
As the market grows, consumer demand is also becoming more diverse – beyond basic needs like food and healthcare, there is rising interest in smart, multifunctional, and innovative products tailored to the personalized lifestyles of pets and their owners, according to the White Paper.
How U.S. Tariffs Affect the Pet Industry in Vietnam
While the direct impact of U.S. tariffs is primarily felt by large exporting countries, the pet industry in Vietnam is also not immune to these changes. As the demand for pet products grows in Vietnam, challenges in the supply chain for companies importing pet food and products could result in product shortages or price hikes, potentially affecting consumer purchasing power. However, this situation also presents an opportunity for local businesses to grow, as the demand for domestic pet products rises. Vietnamese businesses can seize this opportunity to offer high-quality, reasonably priced alternatives to imported products.
Conclusion: The Future of the Pet Industry Amid U.S. Tariffs
U.S. tariffs under President Donald Trump are creating significant challenges for the global pet industry, with effects on production costs, supply chains, and business strategies. However, every challenge also presents an opportunity. Pet industry businesses must stay agile and innovative, finding new solutions to ensure long-term success. For the pet industry in Vietnam, although there are some indirect effects, there is also a unique chance to solidify the position of domestic businesses and leverage the growing demand for local pet products.
