The U.S. is intensifying tariffs on key global trading partners, particularly affecting transshipped goods with an additional 40% duty. This approach is part of a strategy to address perceived unfair trade practices, impacting various economies including China. Analysts suggest that the U.S. aims to create supply chains less dependent on China amid rising tensions. This tariff expansion may also serve as a bargaining chip in negotiations, compelling countries to avoid tariff evasion. Vietnam has notably benefited from supply chain shifts since the onset of the trade war.
The latest tranche of "reciprocal" tariff hikes impacts dozens of economies from Taiwan to India, aiming at what Washington deems unfair trade practices.
Washington likely wants to develop supply chains that are less reliant on China, as tensions simmer between the world's two biggest economies.
The point is to make countries worried about tariff evasion, compelling them to err on the side of caution in their trade practices.
Experts noted that Vietnam emerged as the biggest winner from supply chain diversions from China since the first Trump tariffs in 2018.
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