US President Donald Trump shook the world when he first announced\nmassive global tariffs on 2 April 2025. The policy immediately sparked a\nnew trade conflict between the US and China, as well as the US with some\nof its allies.<\/p>\n
Trump\u2019s tariff disaster was proclaimed to restore the glory of US\nmanufacturing and break dependence on China. Trump\u2019s priority was to\naddress the US trade deficit with Asia, which stood at US$760\nbillion.<\/p>\n
However, Trump\u2019s high tariffs also hit US tech giants that rely on\nsupply chains in Asian countries. Thanks to strong lobbying from tech\nCEOs, Trump eventually exempted consumer electronics produced across\nAsia. Only goods made in China were subject to a separate tax related to\nfentanyl, up to 20%.<\/p>\n
A year later, Trump\u2019s unpredictable tariff policy has reshaped supply\nchains. Yet, the outcome has not met Trump\u2019s expectations. The high\ntariffs that brought global havoc have not succeeded in bringing\nprosperity to the US manufacturing industry.<\/p>\n
Bloomberg\u2019s analysis of customs data on shipment levels shows a shift\nin manufacturing to Vietnam. Last year, Vietnam surpassed China as the\nmain supplier of laptops and gaming consoles to the US for the first\ntime.<\/p>\n
How China Faces Trump\u2019s Uncertainty<\/p>\n
A more surprising fact from Bloomberg\u2019s findings is that core\nelectronics production still occurs in China. This demonstrates China\u2019s\nrapid adaptability in facing repeated US sanctions and regulatory\nuncertainty from the Trump administration.<\/p>\n
Faced with unpredictable tariffs, Chinese producers found a\ncost-saving solution: moving final assembly lines with low-skilled\nlabour to Vietnam, where they face lower import duties, according to\nBloomberg on Wednesday (1 April 2026).<\/p>\n
Vietnamese factories that assemble China-made components and ship\nthem further contribute less than 8% of export value in some cases, per\nBloomberg\u2019s analysis.<\/p>\n
Shipments of goods from China to the US dropped by US$51 billion in\n2025. However, this did not correspond to an increase in US domestic\nmanufacturing, as Trump had envisioned.<\/p>\n
The US instead recorded larger imports from Vietnam. The value rose\nfrom US$13.4 billion in 2024 to US$29.8 billion in 2025. Overall, the\ncumulative increase in US imports by US$49 billion came from several\ncountries, including Vietnam, India, and Mexico, according to\nBloomberg\u2019s data analysis.<\/p>\n
That data also shows that the US still bought seven expensive\nelectronics products worth US$130 billion from abroad last year, down\nonly slightly more than 1% compared to 2024.<\/p>\n
Demand for Labour in Vietnam Surges<\/p>\n
Demand for labour in Vietnam\u2019s northern Bac Ninh province industrial\nzone is so high that novice factory workers are bused in from remote\nvillages to fill 1,000 job openings advertised since Lunar New Year,\nrecruiters told Bloomberg News.<\/p>\n
\u201cThe bonuses companies offer to new workers show how urgently they\nneed staff,\u201d said Nguyen Van Dai outside the Foxconn Technology Group\nfactory.<\/p>\n
\u201cLast year, Foxconn held five rounds of recruitment where they gave\nbonuses to workers of 15 million dong (US$570), the highest amount so\nfar, to meet orders and expansion plans,\u201d he added.<\/p>\n
Bloomberg\u2019s analysis of 2025 data found that Fukang Technology Co., a\nFoxconn subsidiary, exported MacBooks, iPads, and motherboards worth\nUS$8.6 billion for products and servers. They also imported various\ncomponents worth US$7.9 billion from China, South Korea, and Taiwan.\nThat means at most 7.8% of that export value was generated in Vietnam,\nif all finished products at Fukang were exported.<\/p>\n
BYD Co., though better known for electric vehicles, also produces\niPads for Apple Inc.\u00a0and follows a similar strategy. From its factory in\nPhu Tho, 100 kilometres (62 miles) outside Hanoi, the company exported\niPads and other products worth US$5.1 billion, and imported components\nworth US$4.9 billion, generating only 4.5% of export value in Vietnam.\nImports from China accounted for 61% of its incoming shipments, nearly\nmatching Foxconn\u2019s share.<\/p>\n
BYD and Foxconn did not respond to requests for comment. Vietnam\u2019s\nForeign Ministry did not immediately respond to requests for comment\noutside regular working hours.<\/p>\n
Trump\u2019s \u2018Made in USA\u2019 Ambition Fails<\/p>\n
The recruitment wave in Vietnam delivers a severe blow to Trump\u2019s\n\u2018Made in USA\u2019 agenda. In reality, Trump\u2019s dream of returning\nmanufacturing and \u2018blue-collar\u2019 jobs to the US is in vain.<\/p>\n
When Trump raised high tariffs, one of the main reasons he cited was\nthe US\u2019s inability to produce many goods.<\/p>\n
\u201cWe import almost all our computers, phones, televisions, and\nelectronics,\u201d he said at the White House, when announcing high tariffs\nfor more than 180 countries.<\/p>\n
Trade flows with added value through third countries have helped\nChina manage geopolitical risks while exposing the limitations of\ntariffs in curbing its export machine.<\/p>\n
\u201cChinese companies are far better at controlling costs. They are much\nmore efficient because they have a very large supply chain, from\nupstream, midstream, to downstream, making it easier to control costs in\nevery segment,\u201d said Dan Wang, China director at Eurasia Group.<\/p>\n
\u201cVietnam, in particular, is a very strategic location for Chinese\nproducers,\u201d he added.<\/p>\n
As a severe blow to Trump\u2019s flagship policy, the Supreme Court\noverturned most of his tariffs earlier this year, including fentanyl\nduties on China. The White House quickly launched a trade\ninvestigation.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/a-severe-blow-to-trump-making-china-suffer-was-in-vain-1775104109", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }