Tariffs Raise to 180%, Label Export Industry Shaken — Will Betckey Increase Price?

Before the recent tariff hike, labels made in China were super competitive in the U.S. market. Why? Because China has a complete and mature supply chain for label production.

Over the years, with the hardworking and ambitious Chinese workforce, the supply chain in China has become highly developed. China now has well-established basic industries, including chemical and mechanical development. This results in a highly integrated industrial chain essential for label production. For example, producing labels requires silicone oil, which is readily available in China. It also needs adhesives, and in China, you can easily find dozens of options to choose from. In addition, we also have skilled workers, cost-effective materials, and fast response — all of which helped China quickly become the factory of the world.

Although labor costs have risen in recent years, China’s other advantages remain unmatched by most other countries. That’s why “Made in China” is still going strong around the globe.

A full label industrial chain includes raw materials, manufacturing equipment, label production, packaging and shipping. All the supporting resources can be found easily in China.

let’s learn a bit about the supply chain in the label production process.

These steps are closely connected and supported by both skilled workers and stable material supply. All the raw materials used in label production are easy to get in China and are available at low cost. At the same time, it’s easy to gather well-trained workers to carry out each part of the process efficiently.

Take facestock as an example — it starts with wood. From raw wood to finished facestock, there are many steps involved: wood harvesting, transportation, pulping, coating, drying, and finally, turning it into usable facestock. See, just making the facestock alone involves a long chain of steps. Without a mature supply chain, the cost of production would be extremely high.

In theory, export price = cost + profit.

After the 150% tariff hike, the final landed cost for U.S. customers has nearly doubled. Here's an example:

This means that if Chinese exporters do not lower their prices, the customer’s actual cost in the U.S. will surge by 2.63 times (from $1.10 to $2.60). It's almost certain that this will lead to reduced demand and lost orders.

Though America has 0% import tariffs, and also enjoy advantages like no time zone difference, easier communication, and faster local shipping.However, because the supply chain is not complete, like what we have discussed above, most raw materials are still more expensive and cause more waste.

The tariff hike not only affects China, but is also bad news for American customers and merchants. It will drive up the overall price of American goods, resulting to serious inflation. As tariffs increase, the cost of imported goods— including raw materials—will rise. Bosses have to pay more salaries to staff.

As a result, U.S.-based label manufacturers face higher production costs. To maintain profit margins, they are left with little choice but to raise their prices. Furthermore, the inflationary pressure caused by the overall rise in goods prices adds another layer of cost burden.

To maintain profits, U.S. merchants will be forced to raise prices. Therefore, label prices are expected to increase in the near future. 

Southeast Asia’s biggest advantage is low labor costs. After the U.S. added tariffs on Chinese products, low or no tariffs from Southeast Asian countries became another plus.

But can these two advantages shake China’s strong position in label exports?

We believe not in the short run. That’s because the tariff increase is a very recent policy, and Southeast Asian countries haven't had time to prepare. Their manufacturing systems and infrastructure are also still less developed compared to China.

Current Challenges in Southeast Asia

However, if the high tariffs remain for a long time, then Southeast Asia may gradually become a stronger competitor in the label industry.

In the long run, it is possible that Southeast Asia will catch up. Many countries in the region see the huge potential of manufacturing and are working to build better infrastructure and train more skilled workers.

Meanwhile, as labor costs continue to rise in China, Southeast Asia may gain more opportunities and become a stronger player in global manufacturing — including in the label industry.

After careful consideration, Betckey has decided not to raise prices for now.
How long will this last?
We’re not sure — things are changing fast due to ongoing policy shifts.

Why Betckey doesn’t raise price for now?

1. We want to give our customers more time to prepare

A sudden price increase would hurt both Betckey’s sales and customer satisfaction.
We also want to give our customers more time to respond and adjust.
By keeping our prices stable for now, we give our customers time to adapt, improve their profit margins, and maintain a stable relationship with Betckey.
When the time comes, if we do raise prices, customers will be better prepared, and our reputation will stay strong.

2. This sudden trade war is full of uncertainty

Nobody knows how long it will last.
Most people around the world still want open trade and fair cooperation.
Trump’s policies change quickly — the tariff news on April 11 might be followed by another shift soon, depending on China’s response.

If we raise prices right away, and the policy turns out to be temporary, we may be forced to lower prices again. That could lead to complaints from customers who already paid more — not a good situation for anyone.

If the high tariffs stay in place long-term, Betckey will raise prices when necessary. We believe our customers will understand — this situation is difficult for both sides.

But no matter what, Betckey promises:
Any price increase will be reasonable. We will only adjust prices to cover the additional cost caused by tariffs, and continue to offer high-quality, affordable labels.

At the same time, we’ll maintain a fair profit margin that allows us to invest in R&D — so we can keep improving and deliver long-term value to our customers.

Take these three newly developed labels for example:

1. Synthetic Removable Thermal Labels

We’re about to launch a new product: synthetic removable thermal labels.
These labels use a plastic facestock that’s waterproof, oil-resistant, and tear-resistant.
They come with removable adhesive — strong when applied, yet easy to peel off without leaving marks.
We’ve introduced the features and use cases in more detail in another article.

2. Red Label with White Text

Most traditional labels use black text on a white background. But we are developing new labels with different color combinations. One of them is a red label with white text, which is still in testing. It’s a great option when you need to highlight something important or show a warning. Coming soon — stay tuned!

3. Silver PP Labels and holographic Silver Labels

After years of steady growth, Betckey is now exploring a wider range of label materials.

We have recently developed and tested silver PP labels and holographic silver labels to meet our customers’ needs for more material options.

The holographic silver labels have a shiny, colorful or star-like pattern. They are perfect for brand protection (anti-counterfeit), gift packaging, and limited edition products.

The sudden tariff surge may have a temporary impact on Betckey, but we will not panic or lose our direction.

As one of China’s leading label exporters, we have a stable cash flow and a strong support system behind us. We will do everything we can to protect the shared interests of both Betckey and our customers, and get through this uncertain storm together.

Believe in us. Remember Betckey’s promise? We’ll stand firmly with you.

About Betckey

Betckey Premium Labels is a leading supplier of compatible direct thermal labels, committed to high-quality and eco-friendly products as well as competitive pricing. We offer better products than manufactured original at 70% less price. Now, our Amazon store ranks first in the US, Canada, and Western Europe with thousands of positive ratings. Visit betckey.com and get 10% off purchases over $150 with code Betckey10 and 15% off over $400 with code Betckey15! Sign up now and we'll send you a $5 discount code towards your first purchase. By the way, welcome to follow our official @ Tik Tok and @ Youtube accounts to get Betckey’s latest news!