Some forty countries, including Washington’s major trading partners, serve as bases for forwarding Chinese goods to the United States to avoid tariffs, according to a White House report released Thursday.
Among those mentioned are neighbors Mexico and Canada. Also the European Union, Taiwan, India, Japan, South Korea and Vietnam.
The denounced practice consists of carrying out the final assembly of Chinese products in a different country so that they are not considered “made in China,” the document states.
This allows companies Ship finished products to the United States from countries with lower customs tariffsaccording to the US government.
The report highlights that around 40 countries “present a high risk of reshipping” of products, seeing there a “network that operates in both production lines and logistics lines.”
Washington denounces that this practice is illegalin accordance with the international trade statutes.
“For years, China has been carrying out a real scam by resending productsmasking its origin during transit through some 40 countries, stealing tens of billions of dollars from our budget,” accused Donald Trump’s trade advisor Peter Navarro during a telephone press conference.
“A Chinese motor in a Vietnamese recliner is still a Chinese motor and is a destroyed American job. The president Trump has promised to end this confiscation through higher tariffs and a better protected border,” he added.
