3 ms·
The words you're looking for are "substantial transformation" [1]. Exporters in country A (with high tariffs on exports to USA) ship partially completed produc
by timr 1y ago
The words you're looking for are "substantial transformation" [1].
Exporters in country A (with high tariffs on exports to USA) ship partially completed products to country B (with no/lower tariffs to USA), and then do some manufacturing step. Country B then exports completed products to USA.
China was doing this extensively via Mexico under the USMCA [2]. It's not a matter of debate.
[1] https://www.trade.gov/rules-origin-substantial-transformation https://www.trade.gov/rules-origin-substantial-transformatio...
[2] https://www.youtube.com/watch?v=5i3Y14TNqCI https://www.youtube.com/watch?v=5i3Y14TNqCI