The Glossary
Transshipment & Origin
Rerouting goods through third countries to dilute tariff exposure — and the rules fighting it.
Definition
Tariffs are assessed on the origin of goods, so duties on China create an industry in making Chinese goods appear to originate elsewhere — from relabelling to genuine re-assembly in Vietnam, Mexico or Thailand. Enforcement tools include substantial-transformation tests, first-sale rules and (since 2026 debates) country-of-origin tariffs on third-country hubs. The April 2025 collapse in direct Chinese imports coincided with surges in Vietnamese and Mexican entries containing Chinese inputs.
Why it matters
Any analysis using country-level trade data must read China numbers alongside its neighbors'; the more effective the tariff, the more misleading the direct series becomes.