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1. OVERVIEW OF THE US–CHINA TRADE WAR IN 2025

Since it first erupted in 2018, the US–China trade war has yet to subside. In 2025, tensions remain high as both sides impose new tariffs and trade restrictions. A notable development is the additional 10% tariff that the US has rolled out on all imports from China, citing concerns over fentanyl smuggling. In response, China may resort to currency devaluation and export controls on critical resources (rare earth metals, chips), escalating the standoff.

These ongoing tensions continue to disrupt global supply chains, especially in the wake of the post-COVID-19 economic recovery. Many multinational companies are accelerating their plans to shift manufacturing away from China to Southeast Asia (including Vietnam, India, Indonesia) or Latin America to mitigate tariff risks and trade uncertainties.

EFFECTS ON THE GLOBAL POD SUPPLY CHAIN

Rising Costs and Pricing Pressures

• Higher input and shipping costs: Increased tariffs on raw materials and components—such as fabric, ink, or packaging—can drive up the final price of POD products. If supply routes from China are strained, sourcing from alternative markets may also incur extra costs.

• Growing warehouse fees in the US: With more sellers seeking to avoid extra tariffs by storing or producing goods domestically in the US, competition for warehouse space and fulfillment services is intensifying.

Changing Consumer Demand in the US

• Increased retail prices: US consumers face higher prices for imported goods, including POD items. Inflationary pressures may reduce discretionary spending in certain market segments.

• Continued growth in online shopping: Despite inflation and economic uncertainty, the sustained rise of e-commerce provides an ongoing opportunity for POD sellers to access a broader customer base via platforms like Amazon, Etsy, or their own D2C websites.

Opportunities for Vietnamese POD Sellers

• Competitive manufacturing base: Vietnam stands out as a viable alternative to China for producing raw materials or finished goods. Local sellers can leverage homegrown resources or tap into nearby markets in Southeast Asia for inputs.

• Export advantages through POD/dropshipping: Printing and fulfilling orders directly in the US (via partners like Dreamship) allows sellers to bypass tariffs and shorten shipping times, leading to better profit margins and stronger customer satisfaction.

STRATEGIES TO STAY RESILIENT

Diversify Your Supply Chain

• Minimize dependence on China: Source from Vietnam or other regional suppliers to maintain a stable flow of materials and guard against sudden price hikes and disruptions.

• Use technology to manage logistics: Employ robust inventory and order management tools to coordinate multiple suppliers, ensure accurate lead times, and reduce bottlenecks.

Shift Toward US-based Printing & Fulfillment

• Avoid steep import tariffs: With printing and fulfillment managed within the US, you can significantly reduce customs and shipping fees.

• Speedy delivery: Domestic US production enables shorter shipping times, enhancing customer satisfaction and brand reputation.

• Boost brand credibility: Products labeled “printed in the USA” often appeal to American buyers looking for faster turnaround and reliable service.

Elevate Product Quality & Brand Positioning

• Invest in design and materials: Amid economic uncertainty, quality and product uniqueness can set you apart and justify premium pricing.

• Optimize marketing channels: Maintain strong SEO, harness social media, and create engaging ads. Emphasizing a cohesive brand story will help you retain visibility amid shifting platform algorithms.

WHY DREAMSHIP IS THE IDEAL FULFILLMENT PARTNER IN THE US

As the trade conflict escalates, Dreamship remains a trustworthy fulfillment ally with an extensive network of print facilities across the US. When working with Dreamship, you can:

• Sidestep tariffs: Printing and fulfilling in the US means avoiding high import duties on goods shipped from China.

• Mitigate supply chain risks: With local inventory and production, we minimize disruptions and guarantee consistent turnaround times.

• Keep Product Costs Stable: No extra tax markup—ensuring your profit margins stay healthy.

• Tap into global POD expertise: Our experience with worldwide POD sellers means we can guide you on product development, operations, and the latest US/EU market trends.

LEADING THE WAY AMID UNCERTAINTY

In 2025, the US–China trade war is still unpredictable. However, Vietnamese POD sellers can rise above the challenges by diversifying supply sources, transitioning to US-based fulfillment, and delivering quality-driven products.

Count on Dreamship to provide reliable, fast, and top-quality print-and-ship services in the US, empowering you to focus on brand building while confidently navigating the evolving global landscape.

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Happy selling!

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