Tariffs hit China's tech trade in America, but the rest of the world kept buying

"In August, Chinese shipments of tech products to the US plunged 70% compared to the fourth quarter of 2024, according to a Goldman Sachs analysis published Sunday. The collapse followed the rollout of President Donald Trump's new tariffs, including a 20% "fentanyl tariff" on all Chinese imports that took effect in March. Meanwhile, other Asian economies filled the gap. From the fourth quarter through August, tech exports to the US from countries like South Korea, Vietnam, and India jumped 80%, according to Goldman."

"Outside the US, Chinese tech exports didn't suffer the same fate. Demand in Europe, Asia, and emerging markets kept growing. "Tech exports to non-US destinations showed little difference between China and the rest of Asia, with tech exports from both performing similarly well compared to other sectors," wrote Goldman's analysts. In July, China and the rest of Asia's tech exports to non-US markets rose about 20% relative to the fourth quarter of 2024, "reflecting strength in global tech demand," Goldman's analysts wrote."

"The tariffs underscore how Washington's trade war is reshaping supply chains and driving high-tech decoupling with China. But the divergence also reflects a bigger trend: a steady reordering of tech supply chains that accelerated during the pandemic and has been reinforced by Washington's trade policies. In 2017, nearly half of the US's critical tech imports came directly from China. By 2025, that figure has fallen below 20%, Goldman estimated."

Chinese tech shipments to the US collapsed after new tariffs, falling roughly 70% in August versus the fourth quarter of 2024. A 20% 'fentanyl tariff' on Chinese imports took effect in March and contributed to the decline. South Korea, Vietnam, and India increased tech exports to the US by about 80% from the fourth quarter through August, offsetting lost Chinese sales. Chinese tech exports to non-US markets rose near 20% in July as demand in Europe, Asia, and emerging markets strengthened. The shift reflects accelerated supply-chain reordering and high-tech decoupling, cutting China's share of critical US tech imports below 20% by 2025.

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