China reroutes exports through Southeast Asia to sidestep US tariffs

Posted on July 9, 2025   |  

Chinese exporters are increasingly rerouting shipments through Southeast Asia to avoid U.S. tariffs, causing major shifts in global trade lanes and maritime logistics.

Direct Chinese exports to the U.S. dropped by 43% year-on-year in May 2025, a decline worth $15 billion.

Despite this, China’s overall exports rose 4.8%, supported by a 15% increase in trade with ASEAN countries and a 12% rise in exports to the EU.

Vietnam played a key role as a trans-shipment hub, with $3.4 billion in Chinese goods rerouted through the country in May — a 30% YoY jump.

Indirect trade via Indonesia also rose 25% YoY, adding roughly $800 million in rerouted goods.

In response, the U.S. imposed a 40% tariff on trans-shipped goods through Vietnam, with more levies likely once Trump’s tariff freeze ends on 9 July.

India’s exports to the U.S. rose 17% in May, partly driven by electronics assembled using Chinese parts — as shown by a 22.4% increase in imports from China and Hong Kong.

Chinese exports to the UAE grew 20% in May, valued at $1.1 billion, positioning Gulf ports as alternative gateways for goods no longer headed to the U.S.