Tariffs Hit U.S. Importers as Supply Chains Shift to Vietnam, India and Thailand

Global trade is in a steady shift as more U.S. supply flows move away from China and into other parts of Asia. The share of supplier volume from China, Hong Kong, and Korea has fallen from 90% to 50% over the past decade, according to Wells Fargo (WFC) Supply Chain Finance data. The shift began during the first Trump term, and it has grown in the years since. As a result, firms in Indonesia, Vietnam, Thailand, and India have gained new demand. In addition, midsize suppliers have moved into Taiwan, Indonesia, Thailand, India, Vietnam, and Malaysia, which adds more options for importers.

Imports from China to the U.S. have dropped 26% year-over-year, according to FreightWaves SONAR. Even so, trade from China into parts of the South Asia Pacific region has jumped. China trade in 2025 grew by 29.2% in Indonesia, 23% in Vietnam, 19.4% in India, and 4.3% in Thailand, based on data from Project 44. In turn, container volume into the U.S. has risen 23% from Vietnam, 9.3% from Thailand, and 5.4% from Indonesia. As a result, a wider group of ports and firms now sits in the path of goods bound for U.S. buyers.

^{Monthly market moves reflect the steady shifts in trade flows and tariff pressure that shaped importer costs through the year.}

Tariffs Raise Costs and Push Firms to Seek More Cash

The near-term view for importers remains uncertain while the Supreme Court reviews the legality of President Donald Trump’s tariff plans. Until that decision comes, firms must handle higher costs that strain cash on hand. In addition, inventories brought in early in the year as part of a frontload phase are now light. As a result, the impact of tariffs now shows up clearly on balance sheets.

HSBC Holdings (HSBC) says clients face higher cash needs due to the tariff increase that followed in April. The average tariff moved from 1.5% to double-digit levels. Thin-margin fields like generic drugs and apparel feel the strain first, since they have less room to adjust, leading buyers and suppliers to stretch payment terms to keep cash stable.

HSBC handles more than $850 billion in global trade flows each year, and its Trade Pay platform helps clients use receivables, payables, and stock as sources of funds. The bank has seen a 20% rise in financing flows since the new tariff plan came into effect. In addition, the stock that firms brought in to offset tariffs is near empty, which lifts the need for fresh cash as talks with suppliers shift.

^{Net operating income by segment shows how HSBC business lines gain from higher trade finance and cash flow needs as tariff pressure lifts demand for short-term funding.}

In a new HSBC survey of 1,000 U.S. companies, more than 70% say their cash needs grew year over year. As a result, many now review their supply chain mix and the time they take to pay for goods. They look at the rates they pay and the time they get to settle each bill. In the end, many now see cash as a key tool for the months ahead.

We used TipRanks’ Comparison Tool to align major companies that used to source large amounts from China and now depend more on Vietnam, Indonesia, and Thailand.