No more 'made-in-China' in the U.S.? It's headed that way, Chinese exporters say
No more 'made-in-China' in the U.S.? It's headed that way, Chinese exporters say
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How do the tarrifs actually work? Are they applied on all shipments from China or on any Chinese product shipped from anywhere?
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Country of origin.
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So basically Chinese companies could ship prosucts in parts to neighbouring countries for assembly and they'd be sellable in the USA?
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Nobody said tariffs were efficient.
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Inconvenient (for the world) at best, devastating (for the USA) at worst
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That depends on how the tariff is written. It may work that way, or the tariffs may also apply to parts of Chinese origin.
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Right! You see, this will increase global manufacturing’s need for oil for all that extra shipping, thus raising the price of oil, so US oil makes us all* rich!
- “All” meaning all the people already rich from making/selling oil including, and mostly, non-American countries/oil barons. The average person will almost certainly see their overall wealth decrease greatly.
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In theory.
And it actually probably would be pretty easy to do following US requirements, seeing how lax some of the "Made in USA" labels are:Made in USA of Imported Parts
...the final construction is done in our country, but all or nearly all the parts have been imported from other countries
Made in USA with Global Components or Global Materials
...the final product is finished in the United States. There could also be a few or no parts of the product that are made in the US, but the majority are made and imported from foreign countries.
Assembled in the USA
...the majority or all of the product is put together in the United States or its territories. ...it’s a foreign product, with foreign-made materials that were only Assembled in the United States. -https://www.allamericanmade.com/what-does-made-in-usa-mean/But the logistics of funnelling $450 billion worth of parts through somewhere else would be basically impossible.
...or they could just lie.-
This is what people are missing. China already built up their logistics in Vietnam and Mexico most famously. This is transhipment. Every since Trump term one, they have been planning this day.
So while your right, in normal conditions it should be impossible. In our reality it's what's already happening. Just wait till we get "Spanish" cars. This was always the plan.
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Assembly is not enough.
It's not just a tariff, and it's also not just a single row list of tariffs on countries or products or whatever.
The tariff tables are multi dimensional. Each product has it's own table of rates. Besides country and product type, there's a dimension of how it's assembled/manufactorered and potentially if it's part of some sort of special agreements etc.
"The tariff" is basically a worldwide database of product information.
There are actually very few products that are fully produced in any one country. This is mostly agricultural or raw ressources. All other products are said to be manufactorered from different countries. The country of origin in that case is the last country in which the product significantly changed value from being manufactorered locally and it requires a facility to do so. Slapping a sticker on something is not enough.
Anyway, the tariff tables take all that into account. It's very naive to think you can legally bypass this system simply by leaving a product in your neighbors garden before bringing it home.
You don't have to waste your time doing that for fun. Plenty of people in logistics get paid well for doing just that, and if they can't find the loophole, there is very little chance that you'll find it described online.
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The country of origin in that case is the last country in which the product significantly changed value from being manufactorered locally and it requires a facility to do so. Slapping a sticker on something is not enough.
My point is, that there is indeed a significant change, when parts are put together into a product. In the case of almost 150% tariffs, I am sure that this would be an attractive solution.
I am not looking for a loophole. Just stating the obvious and trying to understand how the USA handles these challenges. Slapping tariffs on countries seems naive, when globalization has intertwined every country into each other. Especially when it comes to trade and production
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15 comments