Signal Tariff Volatility Pushes Global Supply Chains into Regional Reset in 2026

Summary

US tariffs on China stacked to roughly 20-32%, combining a 10% Section 122 global tariff signed on 24 February 2026, 25% Section 301 tariffs on most manufactured goods, and 50% Section 232 tariffs on steel and aluminum, with electronics carrying exemptions as low as 7.5-10%. The earlier IEEPA-based 'fentanyl' tariffs on China were struck down by the US Supreme Court on 20 February 2026 and are no longer in effect, prompting the shift to the Section 122 framework. A US-India trade deal signed 3 February 2026 cut India's tariff rate to 18% from a prior 25% (which had briefly reached 50%), effective 7 February 2026. Countries such as Taiwan, Thailand, Indonesia and Cambodia, previously facing tariffs of 32-49%, moved down to the 10% Section 122 baseline plus applicable duties. A survey found 72% of respondents cited US tariff volatility as the most impactful regulatory change, up sharply from 41% in 2025, driving companies to build independent regional supply-chain circles in East Asia, North America and Europe. No independent source in this search corroborated the specific claim of a 25% US tariff on countries trading with Iran.