EU, Mexico, Canada, and Other Countries Flagged by US for Risk of Chinese Tariff Evasion

 

Washington—The Trump administration on Thursday flagged more than 40 US trading partners as countries at risk of facilitating the evasion of tariffs imposed on Chinese goods by diverting merchandise through third countries.

In a report released by the White House Office of Trade and Manufacturing Policy, the US government warned of so-called “illegal transshipment,” a practice in which Chinese products are sent to other countries to alter their origin or trade route and subsequently enter the United States with lower tariffs.

Among the identified partners are Mexico, Canada, the European Union, India, Japan, South Korea, Vietnam, and Singapore, among others. The document maintains that some of these economies present a high risk due to their trade ties with China or the advantages they offer for accessing the US market.

Peter Navarro, White House trade advisor, stated that for years China has used third countries to facilitate the entry of its products into the U.S. market and described this practice as a large-scale tariff avoidance network.

As part of the strategy to combat these operations, the Trump administration announced it will use artificial intelligence tools to analyze international trade data, shipping routes, and merchandise characteristics in order to identify potential discrepancies and detect transshipment operations.

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