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Trump tariffs and roundabout trade

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  • Ito, Tadashi

Abstract

Although there are many news articles of tariff dodging via the re-routing of made-in-China goods through third countries, relabeling these goods as made in Mexico or made in Vietnam, there have been no scientific studies on this issue. This paper provides statistical evidence regarding whether such practices are taking place. Using monthly trade statistics at the most disaggregated level and analyzing data up to 2019, the year before the COVID-19 shock, little evidence of roundabout trade is found. With an extended dataset up to 2023, overall there is little sign of roundabout trade, although some slight signs of roundabout trade are found for Mexico and Vietnam.

Suggested Citation

  • Ito, Tadashi, 2024. "Trump tariffs and roundabout trade," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 46(3), pages 25-47.
    • Handle: RePEc:zbw:kdijep:303055
    DOI: 10.23895/KDIJEP.2024.46.3.25
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    File URL: https://www.econstor.eu/bitstream/10419/303055/1/1902945999.pdf
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    References listed on IDEAS

    as
    1. Cecilia Bellora & Lionel Fontagné, 2019. "Shooting Oneself in the Foot? Trade War and Global Value Chains," Working Papers 2019-18, CEPII research center.
    2. Mary Amiti & Stephen J. Redding & David E. Weinstein, 2019. "The Impact of the 2018 Tariffs on Prices and Welfare," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 187-210, Fall.
    3. Cecilia Bellora & Lionel Fontagné, 2019. "Shooting Oneself in the Foot? Trade War and Global Value Chains," Working Papers 2019-18, CEPII research center.
    4. Chor, Davin & Li, Bingjing, 2024. "Illuminating the effects of the US-China tariff war on China’s economy," Journal of International Economics, Elsevier, vol. 150(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trump Tariffs; Roundabout Trade;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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