Trump may undermine Chinese exports by raising tariffs
Photo: US President Donald Trump (Getty Images)
US President Donald Trump is increasing pressure on China in an attempt to block export bypass routes through third countries, Bloomberg reports.
This could jeopardize 70% of Chinese exports to the US and deal a blow to the Chinese economy.
According to the data, Beijing is increasingly using countries such as Vietnam, Mexico, and even the EU to supply goods to the US, bypassing direct trade barriers.
While in 2017 China's share of total value-added products entering the US via third countries was 14%, by 2023 it had grown to 22%.
Analysts believe that Trump's new strategy of raising tariffs and tightening supply chain requirements could hit 2.1% of China's GDP.
The blow will be more significant if partners begin to avoid cooperation with Chinese companies due to the new rules.
In EU's sights
The US is currently sending warnings to a number of countries demanding that they conclude bilateral trade agreements by August 1.
Otherwise, Washington is threatening new tariffs on goods supplied through third countries.
In particular, Mexico, Vietnam, and even the European Union, which China uses as a logistics hub for re-export, are being targeted.
Washington is already including supply chain security requirements in its trade agreements, as seen in the recent agreement with the United Kingdom.
At the same time, Bloomberg notes that it is unclear how effectively the US will be able to enforce these restrictions. The definition of localized products and the criteria for inspections remain unclear.
Trump's tariffs
On April 2, 2025, US President Donald Trump announced that he would impose tariffs on goods from all countries.
On April 9, Donald Trump put a pause on customs tariffs for a number of countries, except China. The US president said that countries must conclude trade agreements with the US within 90 days.
On May 12, the US and China announced that they had agreed on a 90-day trade truce.
In addition, the US Trade Court blocked Trump's tariffs for other countries. The court ruled that he had exceeded the powers granted to the US president by the International Emergency Economic Powers Act of 1977.
