How Beijing Evades Tariffs and How the US Is Fighting It

A centerpiece of President Donald Trump’s new trade agreement with Vietnam features a steep 40 percent tariff on transshipped goods.

Transshipment is a trade strategy employed by countries to sidestep tariffs and other trade barriers. Usually, products from one country are shipped to another where they are minimally processed, repackaged, or relabeled to make them appear as if they were manufactured in the second country.