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this post was submitted on 23 Nov 2024
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Even worse, China has already begun moving their Chinese-owned production to Malaysia, circumventing the tariffs on Chinese imported finished goods.
I heard about this a few months back on a podcast about auto parts. China just shipped the fan belts they were making to a warehouse in Vietnam, rebranded them, and shipped them to the US, tariff free.
They did some sort of chemical analysis on the Made in China and Made in Vietnam belts and the formulation of the rubbers was identical.
Enforcement to counter this would likely eat up too much of the tariff money, so it just won't be done. China will still get paid the same, and at minimum we'll eat China's additional shipping costs.
That is really interesting, what is the name of the podcast?
I was able to find it!
It is Planet Money - The Trade Fraud Protective 23 AUG 2024
Audio and transcript at that link, or you should be able to find it on your podcast app of choice.
It's also power steering hoses in Thailand, not fan belts in Vietnam, so I hope that's still ok. 😉
Thank you
My pleasure!