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[News] Supply Chain Challenges and Response Strategies Under New US Tariff Regulations

Release time:

Jul 10,2025

U.S. Vietnam tariff agreement risks transshipment penalties demanding localization and supply chain diversification for competitiveness.

[News] Supply Chain Challenges and Response Strategies Under New US Tariff Regulations
[News] Supply Chain Challenges and Response Strategies Under New US Tariff Regulations

The recent U.S.-Vietnam tariff agreement has drawn significant attention. Under this agreement, the U.S. will impose a 20% tariff on Vietnamese exports, while goods transshipped through Vietnam from third countries will face a 40% tariff. Notably, Vietnam will grant zero-tariff access to U.S. products, which may subsequently enter RCEP markets (including China) as "Made in Vietnam" goods, potentially weakening regional tariff barriers. This framework could serve as a template for future U.S. trade engagements in Southeast Asia.

Chinese pulp molded tableware manufacturers (e.g., Zhongxin and Yutong’s Thailand facilities) are accelerating Southeast Asian production to secure preferential 20% tariff rates, mitigating U.S. anti-dumping pressures. Given improving U.S. inflation metrics, Southeast Asian nations may struggle to secure more favorable terms in future negotiations. Should Chinese-invested enterprises in Vietnam rely heavily on Chinese supply chains, their products risk classification as "transshipped" goods, incurring 40% tariffs and higher costs.

Long-term competitiveness hinges on proximity-based localization – situating production near consumer markets. Key strategies include:

Supply chain diversification: Reduce dependency on single transit hubs; deepen local production to satisfy rules of origin.

Compliance verification: Rigorously compute Vietnam production value-added ratios to avoid "transshipment" designation.

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