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U.S. tariffs on foreign imports: income and escape strategies

President Donald Trump’s new tariffs on foreign imported goods aims to bring considerable income to the US government by taxes from Mexico, Canada and China. However, the government’s ability to collect these tariffs has been reviewed. According to a report from Goldman Sachs, exporters are looking for a method of bypassing these financial obstacles, which may cause billions of dollars in the US expected income loss.

Please also read: Trump’s extensive tariffs on Global Trade Branch to Mexico, Canada and China

Last weekend, Trump announced the 25 % tariffs on imported imports from Mexico and Canada and 10 % of China’s commodity tariffs. Although these measures may reduce the federal budget deficit, the actual challenges collected by tariffs may hinder this result. The INDEXBOX platform emphasizes the potential income of these tariffs; however, the Goldman Sachs report shows that the clever tariff strategy can reduce this forecast by $ 30 billion.

The most common method of evasion determined by Goldman Sachs is “Intrepot Trade”. By re -arranging products by third -party countries that are not affected by tariffs, exporters maintain their market existence while avoiding additional costs. In India and Vietnam’s growing trade statistics, this trend is particularly observed that both of them have increased their exchanges with China while strengthening trade with the United States.

The additional evasion strategy includes underestimating the value of the product or the value of the label product to be suitable for lower tariff categories. The differences in tariff rates of various countries and products have further stimulated these practices. As tariffs become more and more common, these avoidance methods highlight the complex challenges of implementing trade policies.

Source: index box market intelligence platform

(Tagstotranslate) Global Trade (T) Tariff Tariff (T) Trump Tariff (T) U.S. Tariff (T) American News

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