China has been redirecting its exports through Southeast Asian countries as a strategy to circumvent the 145% tariffs imposed by the United States under former President Donald Trump's administration, which took effect in April 2025. This rerouting has led to a decline in direct trade between China and the U.S., while shipments to the ASEAN bloc have increased. The U.S. has responded by implementing transshipment tariffs targeting Vietnam and Indonesia, key transit points for Chinese goods. Despite concerns about the scale of this rerouting, some analysts, including Andy Mukherjee, suggest that the impact may be overstated. The trade adjustments reflect ongoing shifts in global supply chains prompted by the Trump-era trade war, which continues to affect China's manufacturing and export strategies.