The Biden administration's new tariffs on Chinese electric vehicles and other strategic sectors aim to protect the future of U.S. manufacturing, but they will likely accelerate a shift of Chinese production to Mexico, Vietnam and elsewhere to avoid them.
U.S. officials and trade experts say that without strong efforts to cut off transshipped or lightly processed Chinese goods from Mexico and other countries, China's underpriced excess production will still find its way into U.S. markets.
"The new tariffs might keep out imports from China but it is likely that much of those imports could be rerouted through countries not subject to the tariffs," said Eswar Prasad, trade policy professor at Cornell University and a former China director at the International Monetary Fund.
Mexico and Vietnam, in particular, have benefited from escalating U.S.-China trade tensions due to their lower costs and proximity, Prasad said, adding that they both need to avoid Washington's "ire" while reaping new manufacturing investments.
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Can tariffs really protect a country's manufacturing sector, or do they just shift where goods are produced without solving underlying issues?
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How do you feel about the possibility of jobs moving from China to Mexico or Vietnam instead of coming back to the U.S.?
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Should the US government prioritize protecting domestic industries, even if it means higher prices for consumers?
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Do you think imposing tariffs on Chinese goods will hurt or help American workers in the long run?