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Trump tariffs and roundabout trade

Author

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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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    References listed on IDEAS

    as
    1. He, Chuan & Mau, Karsten & Xu, Mingzhi, 2021. "Trade Shocks and Firms Hiring Decisions: Evidence from Vacancy Postings of Chinese Firms in the Trade War," Labour Economics, Elsevier, vol. 71(C).
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    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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