US trade with Southeast Asia and Taiwan increasing despite tariffs.

President Donald Trump returned to office a year ago with a promise to reduce the US trade deficit, implementing reciprocal tariffs on trade partners starting in April. While the global trade deficit decreased as intended, Southeast and East Asia saw minimal impact as supply chains shifted instead of US dependence lessening. Chinese exports to the US dropped significantly, but trade in goods with Southeast Asian countries rose despite tariffs, with Vietnam experiencing the most substantial increase. Chinese goods may be rerouted through Southeast Asia, but supply chains are still reconfiguring, with ASEAN importing more goods from China for export production. The White House’s threat of tariffs on transshipments has been challenging due to the complexity of supply chains in the region.

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