EU against 'Made in China'; claims 40 countries reroute Chinese products to avoid tariffs

The United States alleges that approximately 40 countries, including major trading partners like Mexico, Canada, and the European Union, are being used as conduits to re-export Chinese products to the U.S. This practice, detailed in a White House report, aims to circumvent American tariffs.

The method involves performing final assembly of Chinese goods in a different country. This allows companies to label the products as "Made in [Third Country]," thereby avoiding higher tariffs imposed on goods directly from China. The report identifies these nations as posing a "high risk of transshipment" due to their integrated production and logistics networks.

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For years, China has been carrying out a real scam through product re-exportation, masking its origin during transit through some forty countries, stealing our budget in tens of billions of dollars.

Former Trump trade advisor Peter Navarro strongly criticized this practice, calling it a "scam" orchestrated by China. He accused China of masking product origins during transit through these countries, costing the U.S. "tens of billions of dollars." Navarro vowed that President Trump would end this "confiscation" through increased tariffs and enhanced border security.

The report highlights that a Chinese engine in a Vietnamese-assembled reclining chair, for example, still represents a destroyed American job. The U.S. government views this practice as illegal, aiming to protect domestic industries and jobs from what it perceives as unfair trade practices.

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A Chinese engine in a Vietnamese reclining chair is still a Chinese engine and it is an American job destroyed. President Trump has promised to end this confiscation through higher tariffs and a better protected border.