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Trump Tariffs and Roundabout Trade

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  • Tadashi Ito

Abstract

Although there are many news articles about tariff dodging by re-routing made-in-China goods through third countries and relabelling them as made-in-Mexico or made-in-Viet Nam, there are no scientific studies on the issue. This paper provides statistical evidence on whether such practices are taking place. Using monthly trade statistics at the most disaggregated level, analysis using data up to 2019, the year before the COVID-19 shock, show little evidence of roundabout trade. With an extended data set up to 2023, overall, there is little sign of roundabout trade, although some slight signs of roundabout trade for Mexico and Viet Nam.

Suggested Citation

  • Tadashi Ito, 2024. "Trump Tariffs and Roundabout Trade," Working Papers DP-2024-31, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2024-31
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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.
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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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