Companies that tried to avoid tariffs on China imports by moving production to Vietnam may now regret that move.

Retailers may not be able to fully offset these tariffs, as countering the impact of the levies on Vietnam alone would require price increases of 10% to 12%, analysts say.

For years, China’s southern neighbor was a popular alternative for companies trying to avoid the crossfire of U.S. trade tensions with Beijing.

Punishing tariffs on Vietnam, Cambodia, Thailand and others in the region threaten their position as major manufacturing hubs for the American market.

Southeast Asian nations reeled on Thursday as they were hit with some of President Donald Trump's heftiest tariffs, which now threaten the economies that have benefited from investment since he imposed levies on China during his first term.