US Targets Chinese Transshipment Tactics Amid Expanded Tariffs

President Donald Trump is intensifying tariff measures targeting Chinese goods and their evasion tactics, particularly through transshipment, where Chinese products are routed via third countries like Vietnam to avoid higher U.S. tariffs. The Trump administration has concluded a trade deal with Vietnam imposing a 20 percent tariff on its exports, while Chinese goods transshipped through Vietnam face a steep 40 percent tariff, signaling a crackdown on supply-chain diversion that has surged since 2018. Trump has issued warnings to multiple Asian countries to assist in policing Chinese evasion or face higher duties themselves, aiming to close loopholes in the Asian production network. Economic analysts note that while direct Chinese exports to the U.S. have decreased, exports via countries like Thailand and Vietnam have risen anomalously, indicating extensive transshipment activities. The administration’s tariff actions are part of a broader strategy to reduce the U.S. trade deficit and compel China to open its markets, with potential tariff revenues estimated at $300 billion this year. Experts emphasize the significance of these policies in addressing global trade imbalances and highlight ongoing tensions in trade relations, including those between China and the EU, as well as the broader impact on international economic dynamics.