Since April, President Trump has been battling with China over trade, imposing steep tariffs to force talks and cooperation. But, according to a recently published article, simply taxing Beijing may not be sufficient.

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The Epoch Times has the details:

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.

The Chinese regime has long relied on the practice to avoid U.S. trade restrictions, using Vietnam and other countries as vessels for its goods. This effectively lets China avoid higher tariffs.

Even as the President has cracked down on China with tariffs, the nation has been able to avoid much of the inconvenience thanks to transshipment. And China isn’t just using Vietnam, it’s relying on a whole host of countries:

It has become known that the Chinese regime also exploits Cambodia, Indonesia, Laos, Taiwan, and Thailand for transshipment of auto parts, electronics, machinery, and a wide array of other items. Mexico has been another vital country for China’s transshipping endeavors. Others, such as Canada, Israel, and Sri Lanka, have minimally engaged in the practice.

Luckily however, President Trump is savvy to this strategy. His administration is taking transshipment into account, hence the higher tariffs on nations like Vietnam and Laos.

The Trump administration’s crackdown on transshipment, however, may affect American businesses. Should the White House crack down further on this practice by mandating origin audits and supply chain traceability, American companies would face new hurdles. The Times notes that importers would be forced to carefully vet supply chains themselves, likely leading to increased shipping costs and delays.

Nevertheless, the Trump administration’s crackdown may just be worth it. In order to create fair trade between the U.S. and China, transshipment has to come to an end. Let’s pray about this deceptive practice!

How are you praying about tariffs, transshipment, and China? Share your prayers and scriptures below.

(Excerpt from The Epoch Times. Photo Credit: Alex Duffy on Unsplash)