Trump’s war on tariff evasion could turn into a battle over global manufacturing
The Trump administration’s crackdown on tariff evasion through transshipment risks escalating global trade tensions, potentially forcing a major confrontation over manufacturing origins and international supply chain rules.
The White House report titled “The Great Transshipment Scam” may set up a fight over rules of origin.
PHOTO: REUTERS
Bhagyashree Garekar
Published
- The report issued by the White House, titled “The Great Transshipment Scam”, framed the routing of Chinese goods through an intermediate lower-tariff country as an elaborate scheme to conceal their true origin.
- US tariff policies have unintentionally encouraged companies to reroute production and shipments to evade tariffs, complicating trade enforcement.
- A major challenge ahead is defining product origin amid global supply chains, with potential changes threatening to disrupt international trading rules and relations, including with China and ASEAN countries.
PHILADELPHIA – The Trump administration’s new crackdown on tariff evasion may eventually trigger a bigger confrontation over what “Made in China” really means.
Most trade experts say the Aug 13 White House report on alleged China-linked transshipment is less an intellectually rigorous economic analysis than a political document designed to reinforce the administration’s case for tariffs and tougher enforcement.
source: The Straits Times https://www.straitstimes.com/world/united-states/trumps-war-on-tariff-evasion-could-turn-into-a-battle-over-global-manufacturing?ref=top-stories
