Donald Trump’s administration is ramping up pressure on China—this time by targeting indirect shipments of Chinese goods through third countries, which experts warn could jeopardize up to 70% of China’s exports to the U.S.. If implemented, these plans could have severe consequences not only for Chinese industry but also for global supply chains.

📉 China Under Scrutiny: Relying on Mexico, Vietnam, and the EU

According to Bloomberg Economics, China has increasingly relied on re-export routes through countries like Mexico, Vietnam, and the European Union to bypass direct U.S. tariffs.

🔹 In 2023, 22% of Chinese exports to the U.S. went through third countries—up from 14% in 2017.

🔹 If Trump’s administration enforces stricter customs and supply chain rules, up to 70% of China’s exports to the U.S. could be at risk.

🔍 Trump’s New Push: Tariffs and Bilateral Trade Pressure

In recent weeks, the White House has sent warning letters to several governments, demanding new bilateral trade deals by August 1. If not, higher tariffs will be imposed on goods arriving via China, even if they pass through other countries.

📌 The potential crackdown could affect a wide range of products that enter the U.S. under the “guise” of local production. Top at-risk routes include Mexico, Vietnam, and the EU.

Although details remain scarce, the message is clear: anything suspected to be Chinese-made could face higher duties.

🌐 China’s Economy at Stake: Over 21% of GDP in Danger

Experts warn that such moves could cut over 21% of China’s GDP, especially if trade flows slow or shift elsewhere. Furthermore, global partners may begin avoiding Chinese trade routes out of fear of U.S. retaliation.

“Third-country flows have helped cushion the impact of existing tariffs. Stricter monitoring could amplify the damage,” wrote Bloomberg economists Chang Shu, David Qu, and Rana Sajedi.

🧲 Rare Earth Magnet Exports Surge—But At a Cost

While crackdowns loom, exports of rare earth magnets from China to the U.S. surged 660% in June, hitting 353 metric tons, up from 47 tons in May.

This surge followed a breakthrough agreement between Washington and Beijing, which led chipmaker Nvidia to resume exports of its H20 AI chips.

However, tensions remain. In early April, China added several critical minerals to its export control list in response to U.S. tariffs. Despite June’s jump, overall exports of rare earth magnets are still 38% lower than in June 2024.


🔹 Summary: Trump’s crackdown on indirect Chinese exports could destabilize the country’s trade engine and send shockwaves through global commerce. It’s a clash of geopolitics, tariffs, and tech dominance.


#TradeWars , #china , #TRUMP , #Tariffs , #Geopolitics

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