Nations Reroute Billions in Trade to Dodge US Tariffs and Sanctions

Nations Reroute Billions in Trade to Dodge US Tariffs and Sanctions A global web of trade rerouting is allowing nations and corporations to bypass American tariffs and sanctions, with billions of dollars in goods finding new paths to market. From Chinese products relabeled in Vietnam to Russian oil flowing to India, and strategic minerals being channeled through new alliances, the practice is reshaping international supply chains and challenging U.S. trade policy [32794][37638][48991]. One of the most prominent routes involves goods manufactured in China being shipped to Vietnam for minor processing. These items are then repackaged and exported to the United States with a "Made in Vietnam" label, allowing exporters to avoid high tariffs imposed on Chinese products during the recent trade war [32794]. U.S. imports from Vietnam have surged alongside Vietnam's increased imports of Chinese parts, a trend experts say is directly linked to this transshipment practice [32794]. In the strategic resources sector, the United States is actively forging new partnerships to bypass China. A major new deal with Indonesia, the world's largest nickel producer, will give Indonesian minerals better access to the U.S. market for electric vehicle batteries. In return, Indonesia agreed to lower tariffs on American goods, a move experts see as building a battery supply chain outside of Chinese control [37638]. Meanwhile, Russia is working to establish secret routes to maintain its crucial oil trade with India, the world's second-largest buyer of Russian crude [48991]. Following Western sanctions over the war in Ukraine, India capitalized on heavily discounted Russian oil. Moscow's current efforts aim to circumvent the latest U.S. restrictions to preserve this key revenue stream and India's supply of low-cost energy [48991]. U.S. customs authorities are aware of these tactics and have increased scrutiny, particularly on Vietnamese shipments of textiles, electronics, and steel [32794]. Several major penalties have already been issued for false origin claims. However, the financial incentives remain strong, ensuring the rerouted trade flows continue as companies and nations adapt to a fragmented global trade landscape [32794][48991]. Chinese Goods, Vietnamese Labels: The Trade Route Skirting US Tariffs US and Indonesia Strike Deal, Bypassing China on Key Minerals Russia Seeks Secret Routes to Keep Cheap Oil Flowing to India