Correct. However China mostly sends us finished goods. The import/export taxes that got paused were really fucking up supply chains. Allow me to report a portion of another post form another website written by someone who claims to work in the manufacturing sector:

The biggest problem is this: right now, if you have a supply chain that spans multiple countries (i.e. anything sophisticated at all), and one of those countries is the US, then the US part of that chain fucks up the whole operation. Every time you pass a component, material, intermediate good, whatever, to the US, you eat shit. If the next step in your process requires you to ship something back to China, you eat shit again.

In many/all cases that I've seen, intermediate products are being tariffed at the entire value of the thing--even if a large portion of that value is US origin or has already been tariffed at an earlier stage of production. Here is a real example:

1.) Precious metals owned by a US firm are sent to Japan for reprocessing into alloy ingots/targets. Metal value is ~$1M, but this has already been bought and paid for long ago.

2.) Ingots are sent back to the US. The fab cost is maybe $50k, but lol & lmao customs charges a ~250k tariff on the total value of the goods,

3.) Ingots are used in the US to manufacture some components. These are sent to China for integration into an assembly. The component cost is maybe 200k over the materials, but lol now the whole 1.2M gets charged 34% tariff. Even if you say the value added somehow approaches zero, there is no way to avoid a tariff much less than 340k without outright fraud.

4.) Finished assemblies now worth 1.3M are sent back to the US for integration into a finished product. ~700k tariff. So on total product cost of 1.3M, you have now paid 1.35M in tariffs. Hail Satan. Even if you avoided retaliatory tariffs and used, say, Japanese firms instead of China for those intermediate steps, tariffs from importing to your American site still amount to nearly 50% of the total cost.

Since the US-based portion of your supply chain is not one of your final US customers, but just a piece of the work that is being done in the US for whatever reason...you can just move it to Asia and now everything is back to normal. Since US based operations are usually R&D, initial product development, whatever, relocating them is much easier than, say, somehow moving everything else to the US--even if you could. Yes, sure, your US customers still have to pay a tariff on the final product, but that's largely their problem.