Chinese-Made Steel Moulds Make More Sense Than Ever With U.S. Tariff Increase?

June 2025 – U.S. steel tariffs just doubled from 25% to 50% — and for injection moulders operating in the U.S., this changes the math on tooling for plastic injection moulding in a big way.

For years, Chinese-made steel moulds have been a competitive alternative to domestic tooling. Now, with the recent tariff increase on imported steel and aluminum, the case for sourcing moulds from China has grown even stronger. Here’s why:

1. Higher U.S. Steel Price Mean Higher Domestic Costs

With tariffs now at 50%, U.S. moldmakers face significantly higher raw material costs — expenses that are inevitably passed on directly to customers. The result: manufacturing in the U.S. just got more expensive, and fast.

2. Cost Gap Widens

Even before the tariff spike, Chinese-made steel tools were reported to be around 30% to 50% cheaper than Western alternatives. The new tariff regime amplifies that disparity, making offshore tooling an even more attractive option for companies focused on maximizing ROI.

3. Pay Tariffs on Plastic Parts–Not on the Tool

Yes, you’ll still need to pay tariffs on imported plastic parts. But like many manufacturers, you can leave the mould in China, run production offshore, and import only the finished parts. For many, this approach still nets out as the cheaper option — especially at scale.

4. China for Steel Moulding: Speed, Quality, and Scale

China is a major global hub for injection moulding, especially steel moulds — largely because they are affordable and readily available. The country’s deep expertise in steel tooling, combined with efficiency, reliability, and scale, continues to make China a compelling choice — especially in today’s shifting trade environment.