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Saturday August 16 2025

Global firms eye alternatives as US trade policy grows unpredictable

16 August 2025 20:50 (UTC+04:00)
Global firms eye alternatives as US trade policy grows unpredictable

With US President Donald Trump ramping up tariffs on foreign imports in his bid to reshape global trade, companies across the world are increasingly seeking to diversify their markets — moving away from the United States, which many now view as an unreliable trading partner, Azernews reports, citing foreign media.

For China, the US has long been its largest trading partner — and a key export destination. But Trump's renewed protectionist stance has placed Chinese firms squarely in the crosshairs. In recent years, American consumers have fueled the rapid rise of Chinese online giants like Shein and Temu, known for their ultra-low-cost goods. However, amid tightening US trade restrictions and escalating scrutiny, these firms are now looking to pivot toward alternative markets.

Despite their commercial success, both Shein and Temu face mounting criticism over a host of issues — from labor exploitation in their supply chains, to environmental degradation, product safety concerns, and the ephemeral nature of their low-cost fashion.

“Shein represents what we call ultra-fast fashion, which goes far beyond the pace of traditional brands like Zara, H&M, or Penneys,” said Alacoque McAlpine, a scholar at the Sutherland School of Law, University College Dublin, and an expert in sustainable supply chains. “The products are often of poor quality, lack durability, and ultimately end up in landfills.”

Although diplomatic tensions between Beijing and Washington have slightly eased in recent months, Chinese goods still face a 30% import tariff upon entering the US. Additionally, starting August 29, Washington plans to scrap the de minimis exemption, which currently allows goods worth $800 or less to be imported duty-free.

The end of this exemption is expected to hit Chinese e-commerce giants hard, forcing them to reconsider their logistics strategies and target markets — further underscoring the growing fragility of global trade ties under the current US administration.

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