INTERNATIONAL
Chinese firms to route goods through third countries to avoid US tariffs - Reports
After a series of steps in the trade war, the US tariff on Chinese goods reached 145 per cent while China's retaliatory tariff on American goods is 125 per cent. - ADOBE STOCK
MOSCOW: Chinese exporters are increasingly bypassing US tariffs by rerouting shipments through third countries, masking the true origin of their goods to avoid steep duties imposed by the US President Donald Trump administration, Sputnik/RIA Novosti reported.
According to the Financial Times, Chinese suppliers are exploiting loopholes by first shipping products to nations like Malaysia, where they obtain new certificates of origin before forwarding the goods to the US.
Advertisements on Chinese social media platforms openly promote such schemes, offering exporters ways to circumvent Washington's trade barriers, the newspaper reported on Sunday.
However, US trade regulations require that goods undergo substantial transformation - such as manufacturing or significant processing - in a third country to legally qualify for a new origin certificate. The report suggests many Chinese firms may be flouting these rules by merely relabeling products rather than making meaningful changes.
On April 2, Trump signed a decree introducing tariffs on imports from other countries. The base rate is 10 per cent and for 57 countries, increased rates have been in effect since April 9, which were calculated based on the US trade deficit with a particular country, so that there is a balance instead of a deficit.
However, on April 9, the US leader announced that more than 75 countries had not taken retaliatory measures and had requested negotiations, so basic import duties of 10 per cent would be in effect for 90 days for everyone except China.
After a series of steps in the trade war, the US tariff on Chinese goods reached 145 per cent while China's retaliatory tariff on American goods is 125 per cent.
-- BERNAMA
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According to the Financial Times, Chinese suppliers are exploiting loopholes by first shipping products to nations like Malaysia, where they obtain new certificates of origin before forwarding the goods to the US.
Advertisements on Chinese social media platforms openly promote such schemes, offering exporters ways to circumvent Washington's trade barriers, the newspaper reported on Sunday.
However, US trade regulations require that goods undergo substantial transformation - such as manufacturing or significant processing - in a third country to legally qualify for a new origin certificate. The report suggests many Chinese firms may be flouting these rules by merely relabeling products rather than making meaningful changes.
On April 2, Trump signed a decree introducing tariffs on imports from other countries. The base rate is 10 per cent and for 57 countries, increased rates have been in effect since April 9, which were calculated based on the US trade deficit with a particular country, so that there is a balance instead of a deficit.
However, on April 9, the US leader announced that more than 75 countries had not taken retaliatory measures and had requested negotiations, so basic import duties of 10 per cent would be in effect for 90 days for everyone except China.
After a series of steps in the trade war, the US tariff on Chinese goods reached 145 per cent while China's retaliatory tariff on American goods is 125 per cent.
-- BERNAMA