Is China circumventing US tariffs via Mexico and Canada? (Joshua P. Meltzer and Maricarmen Barron Esper – Brookings)

The United States’ high tariffs on Chinese imports have incentivized China to find alternate entries to the American market via Canada and Mexico. This paper analyzes the extent to which China has circumvented U.S. tariffs via three pathways: transshipment, supply chain integration, and foreign direct investment. Given that many of the circumvention pathways are legal, the authors recommend the U.S., Canada, and Mexico work together to better align their trade and investment policies with respect to China.

Is China circumventing US tariffs via Mexico and Canada? | Brookings