China reroutes exports via south-east Asia in bid to dodge Trump's tariffs

Chinese exports to the US plummeted by 43% in May, leading businesses to reroute goods through Southeast Asia to avoid tariffs from the Trump trade war. While overall exports from China rose 4.8%, transfers to the ASEAN bloc surged by 15%. A new trade deal with Vietnam imposes a 40% levy on goods trans-shipped through the country, aimed at curbing Chinese re-exports.

Research shows $3.4 billion in Chinese goods were rerouted through Vietnam in May, a 30% increase from the previous year. In the UAE, imports from China rose by $1.1 billion, boosted by demand for electronics.

Studies suggest global supply chains adapt swiftly to tariffs, with India and Vietnam benefiting significantly.