The White House’s absurd claim of a Chinese transshipment “scam”
High tariffs on Chinese goods have had predictable effects
In a new White House paper titled "The Great Transshipment Scam," former Chief Trade Ideologue Peter Navarro accuses dozens of countries, ranging from Japan to Jordan, of facilitating a Chinese scheme to evade American tariffs. The paper aims to detail the consequences of President Trump's first wave of tariffs on Chinese goods in 2018, which many free-traders warned would backfire by creating an incentive for evasion of duties.
As a result, the average tariff-rate differential between China and the rest of the world widened significantly, leading to a sharp decline in American imports from China.
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