Download PDF version

The global trade sentiment in Q2 2025 has been largely dominated by the repercussions of the US trade policy moves. However, even as tariff shocks rattle global supply chains, long-term sourcing trends remain in effect. While brands, governments and consumers are navigating the fallout of the ongoing trade wars, QIMA’s newest barometer report examines how day-to-day sourcing fluctuations fit into the big picture of global trade.

After months of U-turns, is US sourcing still in the same lane as before?

Throughout Q2 2025, US procurement trends tailed the sharp turns in the administration’s tariff policies, resulting in a series of starts and stops. China sourcing volumes were the most affected, with QIMA data showing demand for inspections and audits from US brands slumping -26% YoY in April and -41% YoY in May. Following that, announcement of the 90-day pause on China tariffs may have prompted another stocking up surge among US buyers, described by many as “early peak season”, with West Coast ports reporting highest shipment volumes from China since January.

It is worth noting that on a larger scale, these month-to-month demand fluctuations still fall within the framework of the overarching trend of US supply chains: namely, a gradual decoupling from China in favor of other overseas supplier markets. A key region among them is Southeast Asia, where QIMA’s Q2 data shows inspection and audit demand expanding +31% YoY. As in the first quarter of 2025, Indonesia (+118% YoY) and the Philippines (+67% YoY) saw the strongest year-on-year growth, but Vietnam also received a swell of new orders (+11% YoY).

With multiple trade deals up in the air and a tariff pause on most non-China countries set to expire in July, new short-term shocks may be in store for US supply chains – but big-picture sourcing data shows that the full impact of tariffs and trade policy will become apparent over months and years rather than weeks.

Amid US tariff tensions, China pivots towards emerging markets and strengthens EU ties

Q2 2025 saw a sharp escalation in the US/China trade war, and although a tentative truce was reached in June, there is no denying the impact of US tariffs on China’s supply chain strategy outside of direct trade with the US. QIMA data on China inspection and audit demand points to an ongoing reorientation of China’s trade flows towards emerging markets, as well as potential strengthening of economic ties with advanced economies beyond the United States.

For instance, China’s share in the sourcing mix of EU-based buyers has ticked up in Q2 2025 after several quarters of decline, driven by renewed demand for China inspections in the Netherlands (+28% YoY), Austria (+60%), Poland (+5% YoY) and Spain (+3% YoY). A notable portion of this growth is driven by the Toys and Recreational Products sector (demand +15% YoY from EU buyers), highlighting that despite successful sourcing diversification in sectors like Textile and Apparel, reliance on China for various consumer products remains high.

Figure C1: Evolution of China’s share in sourcing of US- and EU-based buyers

Source: QIMA data on inspections and audits

Figure C2: Demand for China inspections and audits in Latin and South America, Q2 2025

Source: QIMA data on inspections and audits

Intra-region trade highlights growth potential in Latin and South America

After a strong start to the year, sourcing trends in Latin and South America continue proving that the region’s potential is not limited to US nearshoring.

QIMA data shows that while US demand for inspections and audits in Latin and South America has decreased in Q2 2025 (-8% YoY), total demand for the region has expanded +8% year-on-year in the same period. Intra-region trade plays an important role in this trend, with suppliers in Mexico, Colombia, Peru, Chile, El Salvador and the Dominican Republic attracting healthy volumes of business from local buyers.

These trends, especially in the context of Latin and South America’s ever-stronger ties with China, are a vivid example of the growing importance of South-South trade against the backdrop of a global economy weighed down by uncertainty.

European buyers step up Southeast Asia sourcing as consumer outlook stabilizes

With consumer sentiment in Europe largely stabilizing despite global economic uncertainty, European procurement has turned towards expansion again. And while some buyers leaned on their supplier partnerships with China, QIMA data shows that most EU-based brands and retailers prioritized Southeast Asia in Q2 2025.

EU demand for inspections and audits across Southeast Asia expanded on average +13% YoY in Q2 2025, with Cambodia (+9% YoY), Vietnam (+13% YoY) and Thailand (+31% YoY) picking up the most new orders. Demand for textile and apparel capacities was particularly strong in the second quarter, growing at almost twice the pace of the region as a whole.

As before, sourcing close to home remained an important component of European businesses’ procurement strategy, with QIMA data showing aggregated demand for inspections and audits in nearshoring regions ticking up +11% YoY in Q2 2025. That said, brands are continuously refining their supplier portfolio, with orders being further diversified around the Mediterranean. Morocco (+53%), Egypt (+73%) and Tunisia (+35%) are among EU buyers’ top choices in the region, proving to be worthy competitors to Turkey, whose flagship textile industry is facing some challenges in 2025.

Fig. E1: EU top sourcing regions – by relative share

Source: QIMA data on inspections and audits