US EditionTrump targets tariff evasion, with eye on China
UNITED STATES, AUG 6 – The 40% tariff targets goods routed through third countries to prevent evasion by Chinese exporters, affecting global supply chains and trade with Southeast Asia, experts say.
- The United States will impose a 40-percent additional duty on goods deemed transshipped through third countries to evade existing tariffs starting Thursday.
- This move follows the expiration of a temporary truce on August 12, amid ongoing trade tensions and Washington's efforts to curb unfair trade practices and Chinese industrial overcapacity.
- Experts highlight that the US is seeking to establish supply chains with reduced dependence on China, though accurately detecting transshipment is challenging due to strong ties between some countries and China, as well as ambiguous criteria for determining product origins.
- Robin Brooks and other analysts highlighted an anomalous surge in Chinese exports to Southeast Asian countries in early 2025, with Trump tariffs disrupting strategies to offshore manufacturing to nations like Vietnam and Mexico.
- The new tariff regime may pressure China to reduce excess capacity and force supply chains to exclude Chinese inputs, but success depends on international cooperation and how China perceives the transshipment clause amid recent US-China thawing.
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41 Articles
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As the United States ramps up tariffs on major trading partners globally, President Donald Trump is also disrupting strategies that could be used -- by Chinese companies or others -- to circumvent...
Trump's threatened 40% tariff on 'transshipped' goods tries to target China and its manufacturing strength
As the United States ramps up tariffs on major trading partners globally, President Donald Trump is also disrupting strategies that could be used—by Chinese companies or others—to circumvent them. Goods deemed to be “transshipped,” or sent through a third country with lower export levies, will face an additional 40% duty under an incoming wave of Trump tariffs Thursday. The latest tranche of “reciprocal” tariff hikes, taking aim at what Washingt…
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Trump targets tariff evasion, with eye on China
As the United States ramps up tariffs on major trading partners globally, President Donald Trump is also disrupting strategies that could be used -- by Chinese companies or others -- to circumvent them.
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