The proportion of supplier volume from manufacturing in China, Hong Kong, and Korea has declined from 90% to 50% over the past decade, according to Wells Fargo data a trend closely watched not only by global trade analysts but also by traders involved in forex trading strategies, indices trading, and even crypto investment, as supply chain shifts often influence sentiment across the crypto market.
Indonesia, Vietnam, Thailand and India have all benefited from the longer-term diversification of supply chains that picked up during the first Trump administration and initial trade war and has intensified since. These regional production shifts also create ripple effects across risk assets, impacting currencies, equity indices, and the broader crypto market.
Even with a potential Supreme Court ruling against President Donald Trump’s tariffs possible, in the short-term, importers are facing a cash crunch as inventories frontloaded in 2025 run low and tariffs hit balance sheets a development monitored by traders who adjust forex trading strategies and indices trading positions accordingly.
The proportion of volume from suppliers in China, Hong Kong, and Korea has declined from 90% to 50% over the past decade, reflecting a long-term diversification of supply chains that picked up steam during the first Trump administration and trade war, according to an analysis from Wells Fargo Supply Chain Finance.
“From 2018 to 2020, the supplier diversification away from China nearly doubled after the first tariff actions,” said Jeremy Jansen.
He said since the first trade war, the gradual increase in supply chain diversification away from China to the South Asia Pacific region has steadily grown.
These moves have also influenced global markets, including currency volatility and asset reallocations across equities and the crypto market, leading many investors to rebalance crypto investment allocations during periods of trade-related uncertainty.
Imports from China to the U.S. have dropped by 26 percent year-over-year, according to freight intelligence firm SONAR, but trade volumes from China to the South Asia Pacific region have significantly increased.
This shift has long-term implications for indices trading, especially in Asia-focused indices that respond to manufacturing and export trends.
While it remains unclear what will happen to President Trump’s tariff plan with the U.S. Supreme Court decision pending, the short-term impact of tariffs is hitting business balance sheets. As financing needs rise, many companies are turning to alternative arrangements a trend macro traders factor into their global forex trading strategies.
HSBC’s Ajit Menon noted that working capital needs have surged due to higher tariffs. As companies renegotiate terms and seek financing, ripple effects extend into risk assets, influencing investors who balance positions across stocks, currencies, and even crypto investment portfolios.
Since Trump’s initial rollout of sweeping tariffs, HSBC has seen a roughly 20 percent increase in financing flows. As surplus inventory brought in to offset tariffs is now nearly exhausted, companies will need more working capital moving forward a development watched closely by global traders across FX, commodities, indices trading, and the crypto market.
In an HSBC survey of 1,000 U.S. companies, more than 70 percent reported increasing working capital needs.
As businesses reassess supply chain strategies, market participants are also reassessing their own multi-asset allocations, adjusting forex trading strategies, index positions, and crypto investment exposure in response to evolving geopolitical risks.
