US tariffs on transshipped goods create confusion

Business Aug 09, 2025

The US will hit transshipped goods with a hefty 40% tariff to stop Chinese products from sneaking in through other countries.
The catch? Transshipment is already illegal, leaving importers scratching their heads.
Stephen Lamar from the American Apparel and Footwear Association summed it up: there's real confusion about why new tariffs are being added to an already banned practice.

Companies are now double-checking where their materials come from

With higher tariffs possibly affecting anything containing Chinese parts, supply chains just got trickier.
Companies are now double-checking where their materials come from, ordering in smaller batches, and tweaking contracts so vendors take on some of the tariff costs—all while waiting for clearer rules from officials.