US-China Trade Tensions Escalate Further Amid Transhipping Tactics and Tariff Wars
Published on 4.13.25
The ongoing trade tensions between the United States and China have exposed one of Beijing's strategies for circumventing US tariffs, with Chinese companies increasingly using "transhipping" through third countries like Vietnam and Malaysia. This tactic has allowed them to avoid paying the additional 20% tariff imposed by President Trump on Chinese imports.
However, this move is not a new development, as the US economy has long been characterized by trade imbalances. The US itself has experienced significant trade deficits in the past, with its economy nearly quadrupling in size over the past half-century despite these imbalances.
The escalating trade war between the two nations has led to reciprocal tariffs on Chinese goods, with President Trump imposing a massive 104% duty on Chinese imports. China's Foreign Affairs spokesman Lin Jian accused the US of "naked extortion" and "coercion", labeling its actions as unilateralism, protectionism, and economic bullying.
President Trump has maintained that his tariff policy is effective despite China increasing tariffs on US goods to 125%.