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After The 2025 US-China trade agreement, what are the rebound opportunities in the export chain

2025-05-13 14:56

On May 12, the U.S.-China tariff agreement formalized a 30% average tariff on Chinese exports, combining existing 301 tariffs (20% baseline) with newly retained 10% duties. For polyester bags and leather bags industries, supply chain optimization and China-Vietnam dual-location production are now critical to bypass 30% average tariffs while maintaining U.S. market access.


30% average tariff


Post-Tariff Outlook: Balancing Near-Term Gains and Long-Term Shifts


The 30% average tariff replaces former 145% rates, providing immediate relief to polyester bags and leather bags manufacturers. However, supply chain optimization remains urgent due to two key factors:

1

China's Irreplaceable Ecosystem

U.S. brands still rely on China for polyester bag fabric dyeing and leather bag hardware assembly. Vietnam and India cannot replicate these processes until 2028.

2

Mandatory Diversification

Over 63% of U.S./EU companies now mandate phased supply chain optimization toward ASEAN and Indian hubs by 2030, driven by de-risking strategies and labor cost disparities.

3

China-Vietnam dual-location production offers a solution

factorys like Hecheng Bags combine CPTPP advantages with supply chain optimization to neutralize 30% average tariffs through material reclassification and assembly shifts.


Key Impacts of the U.S.-China Tariff Agreement on Polyester Bags and Leather Bags


Supply Chain Optimization Tactics for China-Vietnam Dual-Location Production.

  • The 30% average tariff applies if >60% of raw materials (e.g., fabrics, zippers) are China-sourced.

  • Exclusion opportunities via Vietnam CPTPP compliance: Use ≥40% Vietnam-made polyester bag fabrics or leather bag components to qualify for duty reductions.

  • Relocate final polyester bag and leather bag assembly to Vietnam for 18–22% tariff reductions.

  • Execute ≥3 production stages (e.g., fabric dyeing, cutting, QC) in Vietnam to meet CPTPP requirements.

  • Maintain auditable records (e.g., Vietnamese polyester invoices) to avoid 30% average tariffs.

  • Retain China Operations for Non-U.S. Markets

  • Reserve Chinese factories for EU/domestic orders unaffected by the U.S.-China Tariff Agreement.

Supply chain optimization


Conclusion


As the Tariff Agreement becomes the new normal, agility in supply chain optimization will separate market leaders from the rest. China-Vietnam dual-location production, aligned with CPTPP advantages, allows polyester bags and leather bags manufacturers to evade tariffs while retaining access to China's ecosystem. Brands failing to adopt these de-risking strategies risk losing U.S. market share.






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