{"id":99003,"date":"2025-07-23T00:00:00","date_gmt":"2025-07-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/07\/23\/trumps-tariff-blitz-could-choke-chinas-alternative-exporting-routes\/"},"modified":"2025-07-23T00:00:00","modified_gmt":"2025-07-23T00:00:00","slug":"trumps-tariff-blitz-could-choke-chinas-alternative-exporting-routes","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/07\/23\/trumps-tariff-blitz-could-choke-chinas-alternative-exporting-routes\/","title":{"rendered":"Trump\u2019s tariff blitz could choke China\u2019s alternative exporting routes"},"content":{"rendered":"

The Trump administration<\/strong> is intensifying efforts to undercut China\u2019s exports <\/strong>by <\/strong>targeting transshipment networks<\/strong>, raising tariffs and tightening supply-chain rules on goods routed through third countries, according to Bloomberg<\/a> analysts. This strategy risks choking off 70% of China\u2019s exports to the US \u2014 equivalent to over 2.1% of China\u2019s GDP.<\/p>\n

Since Trump\u2019s first trade war during his first term<\/strong>, China has increasingly leaned on countries like Vietnam, Mexico, and parts of the EU for finishing goods or components bound for the US, in a bid to cushion the blow of US tariffs. China\u2019s share of value-added manufacturing via third countries rose 22% in 2023, up from 14% in 2017, according to Bloomberg Economics.<\/p>\n

Away from China or else:<\/strong> Trump\u2019s administration is threatening<\/a> to slap 25-40% tariffs on goods from Cambodia, Indonesia, Laos, Malaysia, and Thailand to enforce his terms \u2014 including curbing China\u2019s exports \u2014 in trade negotiations ahead of his 1 August deadline. Vietnam was the first Asian country to yield, accept<\/a>ing an agreement<\/a> that puts a flat 20% tariff and a 40% levy on transshipped goods, and drawing Beijing\u2019s criticism.<\/p>\n

The war extends beyond Asia: <\/strong>The US reached an agreement with the UK<\/a> in May that included security requirements for steel and pharmaceuticals, terms which were seen as an attempt to push Chinese products out of British supply chains. \u201cCo-operation between states should not be conducted against or to the detriment of the interests of third parties,\u201d China\u2019s foreign ministry told the Financial Times<\/a> at the time.<\/p>\n

Business backpedal:<\/strong> Economists warn that enhanced tariffs or new supply\u2011chain mandates could significantly disrupt China\u2019s export activity and dent long-term growth. There\u2019s also concern that tighter rules could make international firms more hesitant to rely on Chinese components or production, harming business confidence and investment.<\/p>\n

Yet<\/strong> enforcement faces its own challenges.<\/strong> The US definitions of \u201clocalized goods\u201d remain vague, and verification protocols for origin remain underdeveloped, Bloomberg analysts said. The success of the policy will hinge on enforcement capabilities and compliance of third-country partners.<\/p>\n

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