Businesses across the US and China are scrambling to find ways to skirt President Trump’s steep tariffs on Beijing imports – and some are resorting to risky tactics to run the goods through other countries.

As the trade tensions between the US and China escalate, businesses on both sides are actively seeking ways to sidestep the steep tariffs imposed by President Trump. Recently, it was reported that US manufacturing orders from China plummeted by nearly two-thirds in early April, coinciding with the announcement of Trump's 'Liberation Day' tariffs, which reportedly could exceed 145%. This drastic decline is prompting importers to reroute their shipments through neighboring countries like Canada and Mexico to avoid the dismally high tariffs, with the hope of only incurring a 25% tariff. Jon Monroe, a shipping consultant, illustrates the current state with an image of businesses 'parking containers' as they seek clarity in this contentious trade environment. Experts suggest that major US companies are also exploring manufacturing options in other Asian countries like Vietnam, Malaysia, and India, which benefit from a 90-day pause on reciprocal duties that lowers their tariffs down to 10%. The supply chain has long been under scrutiny, and as companies leverage these loopholes, caution arises concerning proper measures to avoid being flagged by customs. Instances of 'Made in Vietnam' labels disguising Chinese products raise ethical concerns about trade practices. Further complicating the situation, South Korean authorities have discovered substantial value worth of shipping violations, making it evident that companies are rapidly trying to manipulate the system. The future of these trade relations remains uncertain, especially as supply chain diversification becomes increasingly essential. Aditya Mishra from BAT VC emphasizes that enduring reliance on Chinese manufacturing carries risks that go beyond just tariffs. As of late, there have been discussions at the political level, such as Vice President JD Vance's meeting with Indian PM Narendra Modi aimed at expanding trade between the two nations significantly, indicating that the US's strategy involves not just immediate tactics but also long-term shifts. In analyzing this perilous trade environment, it becomes clear that while companies attempt to navigate a challenging landscape of tariffs and trade wars, the actual repercussions could lead to a restructuring of global supply chains, perhaps permanently shifting the manufacturing hotspots across Asia. The implications of this trade war extend far beyond immediate economic impact; they exploit broader concerns about labor, ethics, and market reliability. The stakes are high for small to medium-sized businesses, which may struggle to adapt swiftly, potentially impacting consumer choice and pricing in the near future as these tariffs may persist and loom over the coming months.