Research: The Costs of Circumventing Tariffs

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Research: The Costs of Circumventing Tariffs

When tariffs are levied against a specific country, that country might attempt to circumvent the tariff by rerouting products through a third country to avoid the higher taxes. Research in the aftermath of the 2018 U.S.-China trade war examined this phenomenon, finding that, while tariff circumvention through Vietnam did happen, it wasn’t as widespread as many had initially thought. That said, there still was an increase in tariff circumvention …