Trump's 40% Fine Confuses Asian Countries, Rules Remain Unclear
US President Donald Trump has threatened to impose an additional 40% tariff on products deemed "transshipped," that is, goods routed through other countries to avoid high US tariffs—primarily from China. This policy was announced alongside a global tariff package ranging from 10% to 41% unveiled by the White House on Thursday night. However, the technical rules on how the transshipment tariffs will be implemented remain unclear.
The lack of detailed "rules of origin" has left exporting countries, particularly in Southeast Asia, confused. Countries like Vietnam, Thailand, and Indonesia, which have become alternative manufacturing hubs to China since Trump's first trade war, could be directly impacted. Thailand, for example, faces a 19% tariff—on par with Indonesia and Cambodia—but has yet to reach a final agreement with the US on the definition of local content.
The US has stated that it will release a list of countries and facilities suspected of engaging in tariff evasion schemes every six months. However, many analysts question the effectiveness and clarity of its implementation. Stephen Olson, a former US trade negotiator, believes this move will complicate trade negotiations with China, as Beijing likely views it as a new form of pressure.
Beijing itself responded via official social media, voicing concerns that these restrictions could discourage foreign investment in countries like Vietnam. This could disrupt the industrial supply chain in Asia, as many manufacturers still source components from China before exporting to the US via third countries.
While the threat of these tariffs creates geopolitical tension, some analysts expect their impact on China's aggregate exports to be limited. This is because trade rerouting will continue, and effective enforcement of transshipment policies is considered very difficult. Until the technical regulations are fully clarified, businesses and trading partner countries will continue to wait and speculate. (ayu)
Source: Newsmaker.id
