The 2025 U.S. tariffs have triggered a fundamental rethink across Asia’s supply chains, not just in how goods are sourced and where they’re made, but in how sustainability fits into that equation.
This article examines how the tariffs are affecting key sectors like electronics, fashion, and industrials. China remains the main target, but Southeast Asia is no longer a guaranteed workaround, especially for Chinese-owned factories.
Key Takeaways:
“China+N” Still Matters: but the question now is where the ‘N’ is. With Southeast Asia also facing tariff scrutiny (especially Chinese-invested factories), companies are having to rethink their fallback options. India, Mexico, and even the Middle East are now being explored as alternatives.
The Real Enabler is Traceability: Firms that can prove where things are made – and under what conditions – will be better equipped to manage tariffs and meet rising ESG expectations.
Cost pressure is real: but many companies are protecting their sustainability programs instead of cutting them. Why? Because walking away from ESG now could mean losing access to capital, reputational damage, or both.
Regional supply chains are becoming the norm: Regional Supply Chains Shorter, smarter, and (ideally) lower-emission routes, with less reliance on any one market. It’s more complex, but more resilient.
The recent 90-day U.S. / China tariff pause gives companies a bit of breathing space, but it doesn’t solve the structural iss
The piece also explores how these shifts may drive new regionalised supply chain models – with opportunities to cut emissions and build resilience if done right.
It concludes that this isn’t just about reacting to tariffs, it is about redesigning supply chains to be fit for a more fragmented, sustainability-driven