On May 14, the Biden administration imposed new tariffs on China's strategic industries, including electric vehicles, steel, and aluminum, aiming to protect US manufacturing. However, experts suggest this may push Chinese companies to shift production to Mexico and Vietnam to avoid tariffs.

US officials and trade experts warned that without measures to prevent the transshipment of Chinese goods through countries like Mexico, Chinese products may still enter the US market.

Benefiting from zero tariffs under the US-Mexico-Canada Agreement, Mexico has replaced China to become the biggest US import source. Besides, Vietnam, potentially gaining "market economy" status, could see reduced anti-dumping duties, further facilitating this shift.