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In 2025, the US government imposed a 10% baseline tariff on all goods imported to the USA. Shortly after that, the USA slapped a reciprocal tariff on significant trade partner countries, for instance, China with 34%, Vietnam with 46%, and Taiwan with 32%.
According to the latest updates, as mentioned above, the US has reconsidered its Tariffs and has come up with only a 10% tariff imposition on all the countries except China, which has now increased from 34% to 145%. The table shows that China contributed 13.4% of imports to the USA, Vietnam 4.2%, and Taiwan 3.6%. On April 11, China dismissed tariffs implemented by the USA and raised its tariff on US products imported to the country by 125%.
The war between China and the USA on tariffs will impact both countries. The US government wants to make the USA an industrialist country to bring manufacturing and industrialization back to the country, which is hard to achieve quickly. Imposing high tariffs on imports in the USA can cause trouble for the government and the exporters.
America's imports are much higher than those of China, Vietnam, and Taiwan. High tariffs will impact the country, and sellers will target the US market for their goods. On the other hand, it will impact Chinese exporters as well. The US is China's biggest customer when it comes to exports, but China's more centrally organized economy has been rated as better equipped to handle trade war blows.
US imports from China are 15%, meaning 80% of the goods come from China, while USA exports to China are 16%, which means 43% are sold to China.
The U.S.-China trade war is a modern example of how trade imbalances and unfair trade practices can drive nations to impose tariffs, sparking economic tensions. Here is a timeline of key events leading up to the trade war and the impact of tariffs on global trade.
|
Date |
U.S. Tariff Action |
China’s Response |
|
Mar-18 |
25% on steel, 10% on aluminum (global, incl. China) |
$3B in tariffs on U.S. goods (e.g., wine, fruits, nuts) |
|
Jul-18 |
25% on $34B of Chinese goods |
25% on $34B of U.S. goods (soybeans, pork, cars) |
|
Sep-18 |
10% on $200B of Chinese goods (later raised to 25%) |
Tariffs on $60B of U.S. goods |
|
May-19 |
Raised $200B tariffs from 10% to 25% |
Increased tariffs on $60B of U.S. goods |
|
Aug-19 |
Announced 10% tariffs on remaining $300B of Chinese goods |
Tariffs on U.S. agricultural and industrial goods |
|
Jan-20 |
Phase One deal: Some tariff relief; 25% tariffs remain |
Promised $200B U.S. goods purchase (partially fulfilled) |
|
2021–2023 |
Tariffs maintained under Biden administration |
Retaliatory tariffs remain; trade diversifies |
|
2024–2025 |
No major changes; tariff policy under review |
Open to talks; maintains retaliatory tariffs 125% retaliated tariff imposed |
Tariffs implemented by China and the USA will hit both sides of the business hard. US consumers will face higher prices on imported goods like electronics, clothing, and appliances. US farmers will face a shortage of soybeans imported from China.
The high tariffs will affect both partners. High tariffs will lead to high costs of goods. Because of relatively low tariffs, global companies will move towards countries like Vietnam and Mexico for production and manufacturing.
China's exports to the USA will decline in some industrial sectors, but its connection with other countries will strengthen, and its exports to other countries will increase. The trade war will weaken the relationship between the two countries.
China has been known for its cost-effective, high-quality products and manufacturing industries for decades. It was considered a go-to destination for countries worldwide. However, due to the high tariffs imposed by the USA, sourcing products from this country has become expensive and uncertain. US-based brands and companies seek alternative countries like Vietnam, Taiwan, and Mexico for manufacturing and global supply chain management.
1_Higher Costs Due to Tariffs
2_Geopolitical risks between China and the USA add long-term risk for businesses relying heavily on Chinese suppliers.
3_Supply Chain Disruptions
4_Labor Costs Increasing
Countries looking for high-tech and precision manufacturing should move toward Taiwan. Taiwan offers diversified supply chain methods, making it a great alternative to China. In 2025, Taiwan imposed a 32% tariff. The Trump government has now paused tariffs on every country except China to 10% for 90 countries worldwide.
1_Taiwan is known for producing high-quality electronics, machinery, and components
2_Taiwan has legal frameworks for intellectual property. It offers more security for foreign firms.
3 _ Taiwan is a politically stable country with a strong relationship with the US. However, its relationship with China is stale, which benefits US buyers.
4_Taiwan excels in industries like semiconductors.
5_Many businesses use English and are familiar with Western business practices.
1_Higher Labor and Production Costs compared to Southeast Asia.
2_Limited Manufacturing Scale relative to China.
3_Geopolitical Risk due to rising tensions with China
Taiwan is becoming a popular place for companies to buy products and parts. It is known for making high-quality items, especially electronics and machines. Many big tech companies work with factories in Taiwan. The country also has a stable government and a strong connection with the US.
Even though labor and production costs are higher than elsewhere, many companies still choose Taiwan because of the sound quality. Taiwan's factories are also very modern and use advanced machines. In recent years, more and more global businesses are starting to source from Taiwan. Products that need precision, high technology, and strong quality control measures are best sourced in Taiwan.
Vietnam is quickly becoming one of the top places to buy goods and materials. Many companies are moving their production from China to Vietnam because of high tariff issues. Vietnam has low labor costs and a young, hardworking population, which results in efficiency.
Big brands like Nike, Samsung, and Apple have already had their factories set up in Vietnam for quite a long time. The government in Vietnam supports business and wants to attract more foreign companies.
Vietnam also has many free trade associations with countries like the US and the EU. It helps companies save money on taxes and shipping. Vietnam is already strong in making clothing, shoes, furniture, and simple electronics. It is still growing in more complex manufacturing. As more companies invest in Vietnam, the country's sourcing industry will grow faster.
Vietnam offers many benefits for companies that want to source products.
1_First, it has low labor costs.
2_The workers are skilled, especially in clothing, shoes, and furniture.
3_Vietnam is also close to other Asian markets, which makes shipping fast and easy.
4_The country has signed trade deals with the US, Europe, and other regions. This means lower import taxes for many products.
5_The government supports new factories and welcomes foreign investment.
6_Vietnam also has a stable political system.
7_Vietnam's supply chain is improving quickly.
Even though Vietnam is growing fast, there are still some challenges.
1_One big issue is capacity. Because so many companies are moving to Vietnam, the existing companies will get overloaded with bulk orders. It can impact the quality of the products and cause delays in shipping.
2_Communication may also be hard since not everyone speaks English well. Some businesses find it challenging to work with suppliers because of language barriers.
3 _ Another challenge is that Vietnam is still learning to make complex products like advanced electronics. It is great for clothing and furniture but not always the best for high-tech goods.
Vietnam has a bright future as a sourcing hub. The country's economy is growing fast. More young people are joining the workforce. Many of the youth are learning skills for modern manufacturing.
The government is investing in better roads, ports, and power plants. It is also building new industrial parks to help businesses grow. More companies from around the world are setting up factories in Vietnam. This brings new knowledge, technology, and jobs to the country and will play an essential role in increasing the country's economy.
Vietnam is already strong in making textiles, furniture, and electronics. In the future, it may also become a leader in more advanced products. The country is in an excellent location for global trade. It is close to China and other Asian markets.
Choosing the best country to source from depends on your product and needs. China is still great for big factories and complex products but has higher costs and trade risks.
Taiwan is wise for high-tech items, electronics, and quality parts. It is very safe for businesses and protects your product ideas. If you need high-quality technical goods, Taiwan is better.
Vietnam is best for saving money and finding skilled workers for simpler products like clothing, shoes, and furniture. It is also growing fast and improving every year. Vietnam is a strong option for lowering costs and reducing the risk of tariffs.
Some businesses even use more than one country to ensure they don't depend on just one place.
If you want to explore which country is best to source products from after US tariffs, keep reading this blog. We have discussed all the essential points that companies should consider to determine which of these three countries, China, Vietnam, or Taiwan, is best for their business.
