This week, the global food machinery market saw increased volatility, with diverging demand for French fry and potato chip equipment: Chinese frozen French fry exports rebounded strongly in early 2025, but the Trump administration’s new 40% tariff targeting Chinese transshipment goods directly impacted the machinery export supply chain. Brazil issued a preliminary anti-dumping ruling on color-coated steel plates from China and India, though it did not recommend temporary anti-dumping duties. However, the investigation has been extended to 18 months after the case was filed, which may affect the steel supply chain costs for food machinery. Iron ore prices have risen slightly supported by blast furnace production, but the escalation of US-China trade friction is expected to suppress China’s exports of food processing equipment to the US. The global French fry trade landscape is set to be reshaped by 2025, with China’s status as a frozen French fry giant facing challenges. In the finished product segment, demand for French fry processing line equipment outperforms that for potato chip equipment, as the latter relies more on precision automation. However, inventory reduction at end-user food factories has slowed, and anti-dumping policies further suppress the overall export trend. At the macro level, the Federal Reserve’s Financial Stability Report noted that global trade risks have risen to the top threat, with 73% of respondents expressing concerns about policy uncertainty. Chinese Finance Minister Lan Fuan emphasized that the country will adopt more proactive macroeconomic policies to promote annual growth targets and adhere to the basic national policy of reform and opening-up, granting zero tariffs on products from all least developed countries with which China has established diplomatic relations. Current tariff rumors are exacerbating divergences between equipment and raw materials, but China’s willingness to open its massive market provides support. It is anticipated that export prices for food machinery will experience fluctuating declines, with the divergent trend persisting.
