U.S. Tariffs Test China–ASEAN Trade

The U.S. has introduced a 40 per cent tariff on goods suspected of being re‑exported from Southeast Asia—especially Vietnam and Indonesia—to the U.S. with minimal alterations, targeting evasion of tariffs on Chinese exports.

While legitimate manufacturing across the region continues, enforcement hinges on new rules of origin and stricter inspections. This could challenge the complex, integrated regional supply chains that blur the line between local production and transshipment.

Countries such as Thailand have stepped up customs scrutiny: conducting factory spot checks, analysing documentation, and tightening export licensing—balancing U.S. compliance with their longstanding ties to China.

Despite these measures, many Southeast Asian economies remain closely woven into China-centric production networks. As some commentators note, even enhanced enforcement may struggle to fully contain sophisticated rerouting methods

(Source: White House)