US China Trade War Continues: High Tariffs Persist Despite Summit, Forcing Global Supply Chain Reshuffling

Welcome back to China Tariff News and Tracker, where we break down the fast‑moving world of U.S.–China trade so listeners can keep up without getting buried in jargon.

The big story right now is that tariffs on Chinese goods remain historically high, even after some headline‑grabbing cuts. According to China US Focus, the recent Trump–Xi summit in Busan produced a deal to lower average U.S. tariffs on Chinese imports from about 57 percent to roughly 47 percent. That is real movement, but it still leaves Chinese products facing some of the steepest tariff levels of any major U.S. trading partner, and analysts expect tensions to remain elevated despite the partial relief.

Fortune reports that when President Trump’s latest round of sweeping tariffs took effect on August 1, Chinese exports to the U.S. were hit with rates around 40 percent, triggering a sharp drop in direct imports from China and a parallel surge in shipments from Southeast Asia, where duties averaged closer to 10 percent. Many Chinese manufacturers responded by rerouting production or transshipping through ASEAN countries, underscoring how companies are redesigning supply chains to navigate U.S. tariffs rather than simply absorbing the cost.

Macquarie’s 2026 global outlook, cited by Fortune, notes that these high China‑focused tariffs are accelerating a broader diversification of manufacturing across Asia. That means more Chinese companies shifting final assembly to places like Vietnam, Malaysia, and Thailand to regain some tariff advantages while still relying heavily on Chinese components.

At the same time, the U.S. has not abandoned its Section 301 tariff architecture on China. Trade law firm updates from Thompson Hine highlight that the U.S. Trade Representative recently extended remaining China Section 301 product exclusions instead of dismantling the system, signaling that the legal framework for rapid tariff increases on Chinese goods remains firmly in place.

Tariffs are also now part of a wider strategic toolkit that goes beyond customs duties alone. The South China Morning Post reports that President Trump has just signed a new National Defense Authorization Act that tightens restrictions on U.S. investment in Chinese technology and limits federal contracts with Chinese biotech firms. That adds financial and procurement pressure on top of border tariffs, especially in sectors Washington sees as sensitive to national security.

All of this leaves listeners with a clear takeaway: even with some negotiated reductions, the U.S.–China trade relationship is still defined by unusually high tariff barriers, complex carve‑outs, and mounting regulatory constraints. Companies trading with or sourcing from China are adjusting routes, reworking contracts, and, in many cases, rethinking their entire Asia strategy.

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