The US is pushing global partners to reduce Chinese content in their supply chains through new trade deals. With a July 9 deadline approaching, countries face a stark choice: agree to US terms or face heavy tariffs.
Key developments:
India is negotiating how much local content qualifies products as “Made in India” (US wants 60%, India wants 35%)
Vietnam faces tiered tariffs up to 20% based on Chinese component levels
Taiwan and South Korea are already blocking Chinese goods from being rerouted through their countries
The EU is under pressure to adopt strict supply chain rules similar to the UK’s recent US deal
The stakes: Countries must balance access to US markets against their deep economic ties with China, their largest regional trade partner. China has warned it will “resolutely counter” any deals that harm its interests, putting nations in a difficult position between two economic superpowers.