Following a recent trade agreement between the United States and Vietnam, the Information Technology and Innovation Foundation (ITIF) has expressed support for Vietnam's decision to impose tariffs on transshipped goods. President Donald Trump announced the agreement, which includes a 40 percent tariff on such goods.
Eli Clemens, a Policy Analyst at ITIF, stated that this move by Vietnam is seen as "a constructive step toward fairer global e-commerce trade practices." According to Clemens, Chinese e-commerce platforms have been exploiting loopholes to maintain duty-free access to the U.S. market by using low-cost transshipment hubs like Vietnam. The new tariff framework aims to address these issues while still allowing for efficient cross-border commerce.
Clemens emphasized that for global e-commerce enforcement to be effective, it is important for policymakers to enhance Customs and Border Protection’s capabilities in detecting origin fraud. He suggested that adopting artificial intelligence solutions could be key in this effort.
The ITIF sees Vietnam's commitment as an indication that transshipment enforcement can be prioritized in trade negotiations. Clemens also noted that future agreements should include measures to deter transshipment activities, which would help create a level playing field for U.S. manufacturers and retailers.
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