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by ben_w 440 days ago
Beyond a certain point, the tariffs become meaningless because nobody bothers trading legally anyway.

I don't know where the real cutoff is, but for an extreme example: if the tariffs are 1e6% or 1e7%, nobody's buying anything by lawful channels.

Also, there's not much stopping people from shipping to a country with a 10% tariff, that 10% country taking a 1% cut to slap a different "made in" label on the side and then re-exporting to the US, making it effectively an 11% tariff for whoever originally made it.

2 comments

I may be wrong but shipping via a third country doesn't work - I believe that Section 301 allows the US to re-assign the correct country of origin. Sure, some product may come in via this trick, but anything at scale would be found out. I doubt anyone in the US would mistake a BYD car from being a product from a country other than China.

I know very little however, so if someone with more knowledge on this can chime in on how this works practically, it would edifying.

BYD, perhaps. Given the politics, even if BYD build a factory clearly labelled "BYD" in, say, Canada, and did everything above-board with all the components traced to mineral origins having and audited to have never even gone through China at any point in the supply chain, I can believe they'd get such treatment.

I was thinking more like how Amazon has a seemingly endless collection of suppliers you've never heard of with suspicious names whose letters look like they might be attempting to form syllables. I expect those to be harder to keep track of, and to find it easier to fly under the political radar.

Yeah, at some point it’s just willy waving.