“The report surveyed 800 supply chain finance suppliers. Among the respondents, 75 per cent experienced ‘moderate or no noticeable effect’ from US President Donald Trump’s tariffs, while only 20 per cent cited ‘significant negative impacts’.”
“In particular, analysts from Citi said that the tariffs have failed to prevent China from increasing its goods trade surplus – the Asian superpower recorded a surplus of over US$1 trillion within the first 11 months of 2025.”
“For example, trade flows from North and East Asia (including China) to Asean and South Asia regions rose by 44 per cent during this period – marking a shift towards emerging markets.”
“‘Chinese parent companies have significantly increased their subsidiary presence in Asean and South Asia, with the number of active subsidiaries growing steadily between the first quarter of 2022 and Q1 of 2025,’ said the analysts.”
“They added that regions with the highest export growth to the US – Asean and South Asia (up 51 per cent), and Latin America (up 40 per cent) – are also the same regions to which China has been exporting more in recent years.”
“‘This strongly suggests that supply chains are being rerouted through intermediary countries – often with more favourable trade terms with the US – to facilitate continued Chinese exports,’ the Citi analysts wrote.”