US imports from Southeast Asia are surging despite tariffs:

US imports from Southeast Asia rose +25% YoY in Q3 2025, to a record ~$40 billion on a 3-month rolling average basis, according to US Census Bureau.

Vietnam led the surge, with imports rising to ~$18 billion, an all-time high.

This is despite US tariffs which were initially set at to 49%, but later negotiated down to ~20%.

At the same time, Chinese exports to the US plunged -40% YoY in Q3 2025.

This comes as the region has a massive cost advantage over US and European manufacturing, which ranges from 20% to 100%, even after tariffs.

Companies use Southeast Asian economies as alternative export bases to avoid China's 37% reciprocal tariff.

As a result, the amount of trade rerouting from China hit a record $23.7 billion in September.

US trade flows are shifting sharply amid tariffs.