New Tariffs on China Shake Global Supply Chains in 2026

The trade war is escalating. The European Union and the United States have imposed additional 25% tariffs on a wide range of industrial and technology products from China, in response to the Asian giant's subsidy and dumping policies. The measure, which took effect on June 1, affects key sectors such as electronics, automotive, and machinery, and threatens to raise consumer prices and reshape global supply chains.

The impact is already being felt: the average cost of containers from Shanghai to Rotterdam has risen by 18% over the past three weeks, according to consultancy Drewry. At the same time, 45% of companies surveyed by the International Chamber of Commerce say they are looking for alternative suppliers in Southeast Asia to avoid the new duties. What does this mean for your business and how can you prepare? We explain with data and strategies.

Tariff measures in detail

The new tariffs affect more than 300 product categories, with rates ranging from 15% to 30% depending on the sector. The hardest-hit sectors are:

• Consumer electronics: 25% tariff on phones, tablets, and computers.
• Automotive components: 20% tariff on batteries and electric motors.
• Industrial machinery: 18% tariff on robots and automation equipment.

Brussels and Washington justify the measure as a response to Beijing's unfair trade practices, which include massive state aid and sales below cost of production. China, in turn, has announced retaliatory tariffs on agricultural products and liquors from the US and Europe.

Impact on supply chains

The higher cost of imports is forcing multinationals to accelerate their relocation plans. Countries like Vietnam, India, and Mexico are seeing increased demand. According to WTO data, Vietnam's exports to the EU grew by 14% in the first half of 2026, while India's increased by 11%. This phenomenon, known as 'friendshoring,' is reshaping the global trade map.

However, the transition is not easy: logistics costs, delivery times, and quality of alternative suppliers pose challenges. 62% of surveyed companies admit that relocation will take at least two years and will increase costs by 8-12%.

Comparative table: import costs before and after tariffs

What should companies do to adapt?

Experts recommend a proactive approach: diversify suppliers, review contracts, and assess the possibility of passing on cost increases to final prices. It is also key to leverage free trade agreements (such as USMCA or the EU-Vietnam FTA) to reduce tariff impact. Additionally, some companies are opting for stockpiling to secure short-term supply while finding alternatives.

On the other hand, tariffs can be an opportunity for local producers competing with Chinese imports. Sectors such as textiles and furniture could see improved competitiveness. However, the risk of inflation and the impact on final consumption are real concerns.

Key Takeaways: what you need to know

• Additional tariffs: 15% to 30% on Chinese products, in effect since June 2026.
• Cost increases: containers 18% more expensive; supplier relocation raises costs by 8-12%.
• Winning countries: Vietnam (+14% exports), India (+11%), and Mexico (+9%).
• Adaptation timeline: supply chain relocation will take 2-3 years.
• Strategy: diversify, negotiate prices, and explore preferential trade agreements.

Conclusion: a new era of trade uncertainty

The tariffs on China mark a turning point in international trade. Companies that react nimbly, diversifying their supply sources and adapting pricing strategies, can mitigate the impact. Uncertainty is high, but so is the opportunity for those who can read market signals. Stay informed and consult with specialized advisors to navigate this new landscape.