The United States and Vietnam have signed a trade agreement with tariff rates higher than outsiders expected, and established transshipment clauses to prevent Chinese "origin laundering" — viewed as a US move to squeeze Chinese exports. What is "origin laundering"? How do you define "Made in China"? Can China use this tactic to evade US tariffs? This has been one of the core issues in President Donald Trump's tariff campaigns against Chinese goods across his two terms.
The colloquially termed "origin laundering" exists in a grey area of international trade and represents a tax avoidance method, formally known as "origin fraud" or "transshipment". This refers to goods produced in one country that, after packaging, labelling, simple processing or brief transit through a third country, are disguised as products from that third country before export to evade tariffs, trade restrictions or sanctions.
