In 2025, the U.S. expanded tariffs across strategic sectors, targeting entire supply chains globally, with stricter origin verification, involving ASEAN, Vietnam, Malaysia, Thailand, and Mexico, moving toward systemic protectionism.
Expansion of U.S. Tariff Policy in 2025
In 2025, the United States shifted from a China-specific tariff approach to a broader protectionist strategy targeting entire value chains in key sectors like electric vehicles, lithium-ion batteries, solar components, steel, aluminum, and semiconductors. Tariffs on Chinese electric vehicles soared to 100%, solar cell duties rose to 50%, and lithium-ion batteries were taxed at 25% in 2024. Additionally, semiconductor imports faced tariffs of up to 50% under the revamped Section 301 measures, signaling a comprehensive move to shield critical industries from imported competition.
ASEAN’s Evolving Role in Global Supply Chains
As companies adapt to new trade policies, ASEAN has emerged as a vital production hub to retain market access in the West. In 2024, US imports from ASEAN reached US$352.1 billion, showcasing the region’s growing importance in diversified supply chains. However, strict rules now govern transshipment, requiring genuine value addition and verifiable origin, effectively ending the era of simple rerouting to evade tariffs.
Moving Toward Systemic Protectionism
The 2025 framework signifies a shift from targeted enforcement to systemic protectionism. Combined, the updated Section 301 and 232 measures now cover over US$350 billion worth of imports, including countries like Vietnam, Malaysia, Thailand, and Mexico, which were previously shielded from China-centric tariffs. This approach includes rigorous cross-checking of origin declarations using extensive supply-chain databases, making compliance integral and retroactive duties more commonplace for minimal assembly or relabeling activities.
| This article was first published by ASEAN Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the original article : ASEAN Transshipment and US Tariffs – Balancing Opportunity and Risk
