#TrumpTariffs 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, head of global originations at Wells Fargo Supply Chain Finance.

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.

"Based on our supplier counts, diversification is now 50/50 between the northern Asia Pacific region and the Southern," Jansen said. "The migration of midsize suppliers can be tracked into Taiwan, Vietnam, Indonesia, Thailand, India, and Malaysia," he added.

Imports from China to the U.S. have dropped by 26 percent year-over-year, according to data from freight intelligence firm SONAR, but trade volumes from China to the South Asia Pacific region have significantly increased.