US supply chains enter holidays with fewer options, rising uncertainty

QIMA is a leading global provider of supply chain compliance solutions.

Much of this decline stems from the ongoing shift away from China, where US inspection and audit volumes dropped by 24 per cent YoY in the third quarter (Q3) this year.

Throughout the quarter, other Asian sourcing hubs worked to fill the gap. Southeast Asia and South Asia saw inspection activity rise by 39 per cent and 26 per cent YoY respectively, with double-digit growth in demand recorded in Vietnam, Cambodia, Indonesia, Bangladesh and Sri Lanka.

Still, these supplier partnerships are also coming under threat: escalating trade tensions with India in late August are already showing in US sourcing patterns, while the new US ‘transshipment tariffs’ threaten to disrupt business with Southeast Asia’s manufacturing hubs, especially Vietnam, in the months ahead, QIMA said in a release.

Nearly six months after ‘Liberation Day’, the effects of the US administration’s trade policies on supply chains are becoming clearer, it said.

Meanwhile, US nearshoring and reshoring are advancing slowly, with only 8 per cent of total procurement in Q3 2025 coming from the home region.

As alternatives to overseas sourcing, these options remain very limited in scale: especially considering that brands often turn to domestic suppliers to supplement, not substitute overseas procurement.

With key trade relationships under strain and ties with the European Union (EU) further cooled by the recent deal, US supply chains are entering the holiday season with fewer options and rising uncertainty, QIMA noted.

As the trade war with the United States drives down American demand for made-in-China products, diversified trade partnerships remain a key strategy for Chinese exporters, with emerging markets maintaining great importance.

Latin and South America, with their expanding consumer base and steady appetite for Asia-made goods, continue to be major players in this shifting trade landscape, QIMA observed.

Building on trends highlighted in earlier QIMA barometers, businesses in Latin and South America kept up strong sourcing activity from China and its neighbours throughout Q3 2025.

Inspections and audits for Chinese suppliers rose significantly in Brazil (plus 54 per cent YoY), Argentina (plus 16 per cent YoY) and Uruguay (plus 69 per cent YoY), while demand from Venezuela and El Salvador more than doubled YoY.

Among the fastest-growing categories were textile and apparel.

While EU leaders are hard at work to strike a delicate balance between old and new trade alliances, European brands and retailers have refrained from major supply chain moves this past quarter, QIMA’s data suggests.

For overseas sourcing, EU-based buyers have largely stayed on the course set in the previous quarter, continuing to rely on Southeast Asian suppliers in the run-up to the holiday season.

Demand for inspections and audits rose by 8 per cent YoY across the region, led by Vietnam (plus 21 per cent YoY), Thailand (plus 18 per cent YoY) and Cambodia (plus 10 per cent YoY).

Closer to home, nearshoring partnerships around the Mediterranean saw solid gains in Q3 2025, with inspection activity up by 15 per cent YoY in Morocco, 19 per cent YoY in Tunisia and 24 per cent YoY in Egypt, reflecting its growing role as Turkey’s regional rival, bolstered by major foreign investment in its textile industry.

ALCHEMPro News Desk (DS)