Manufacturers Shift Production From China Amid U.S. Tariff Increases

The impending removal of the 'de minimis' rules will impose a new 20% tariff on all goods from China, effectively raising the total tax on Chinese products to 37.5%. This change has prompted many retailers to shift production from China to countries like Vietnam and India to mitigate the financial impact. In Cambodia, the influx of Chinese manufacturers relocating to avoid U.S. tariffs is evident, with reports indicating that over half of the factories there are now Chinese-owned. As the U.S.-China trade war escalates, Asian manufacturers are feeling the strain, with factory activity showing signs of stress due to increased tariffs and supply chain disruptions. Countries such as Vietnam are experiencing declining export orders as firms grapple with heightened global trade uncertainty. The overall sentiment among factory owners across Asia remains cautious as they prepare for the long-term effects of these tariff policies.