China’s Shrinking Role in U.S. Trade Reshapes Global Supply Chains

China's dominance in global supply chains is eroding as U.S. tariffs and trade diversification efforts take hold. A decade ago, nearly 90% of supplier volume to the U.S. came from China, Hong Kong, and Korea. Today, that share has plummeted to around 50%. The shift, accelerated by Trump's tariff policies, shows no signs of reversing despite recent trade truces.

Chinese exports to the U.S. fell 29% in November alone—the eighth consecutive month of double-digit declines. Higher tariffs on Chinese goods compared to other nations have forced firms to reroute shipments through third markets. Southeast Asia and Europe now absorb more Chinese exports, even as direct sales to America dwindle.

Vietnam, Indonesia, Thailand, India, and Malaysia are emerging as new manufacturing hubs. Wells Fargo data reveals supplier diversification nearly doubled after the initial tariff wave. China's exports to South Asia, meanwhile, have surged—shipments to Indonesia ROSE 29% this year, with similar spikes for Vietnam and India. The global trade map is being redrawn.