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Companies are dodging Trump’s tariffs by sneaking Chinese goods through Vietnam, but their strategy could backfire

June 27, 2019

Companies are evading US tariffs on Chinese goods by rerouting them through Vietnam, according to the Wall Street Journal. The duty-dodging, combined with Vietnam’s hefty trade surplus, could spur President Donald Trump to slap tariffs on the Southeast Asian nation.

“The phenomenon of trade fraud through labeling of the origin of goods as being produced in Vietnam is increasing,” the Vietnamese Ministry of Industry and Trade told the Journal. Companies have been importing Chinese goods, relabeling them as “Made in Vietnam,” then exporting them to the US and elsewhere, Vietnam’s customs agency told the paper.

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