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How Exporters Could Avoid Paying Over $30B in US Tariffs
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Key points
- A report from Goldman Sachs shows that exporters have a way to avoid paying tariffs, just like President Donald Trump intends to impose tariffs.
- Goldman Sachs estimates that because exporters want to avoid 25 % tariffs imported from Mexico and Canada, the United States may lose nearly $ 30 billion in revenue
- The tariffs of goods from Canada and China will take effect on Tuesday, and the products against Mexican items will be postponed for a month.
- Tax evasion can lead to low collection and may bias trade statistics. Exporters can re -layout through other countries, label products or insufficient products to avoid taxation.
Donal Trump’s tariffs on foreign import taxes implemented by Donal Trump this weekend can bring considerable income to the US government, but this is only possible by the government.
Saturday, Trump ordered Mexico’s tariffs are 25 %, and Canada’s 25 % tariffs and Chinese tariffs will take effect this week. On Monday, tariff In Mexico Delay for one monthEssence
One of the benefits of implementing tariffs is that it can help reduce the Federation Budget deficitEssence However, a report from Goldman Sachs showed that exporters have found methods to pay tariffs, which may lead to government income less than expected.
Goldman Sachs estimates that the United States may lose nearly $ 30 billion in revenue as the exporter hopes to avoid the 25 % tariffs imported from Mexico and Canada. Goldman Sachs said that this surpassed the income of about $ 18 million during the first trade war from 2018-2019.
How to defeat tariffs: re -arrange, report and label errors
The most common way for exporters to evade tariffs is to transport their products to transportation from other bystant countries without tariffs, and Goldman Sachs calls it “Intrepot Trade”.
Goldman Sachs said that this trend is likely to be seen in trade data with India and Vietnam. Since 2016, the United States has increased trade with these countries, but these countries have also increased trade with China, which has levied tariffs before Trump’s new proposal.
Other escape methods include items that underestimate the value of the product or the error label, so that they look like similar products, but receive a lower price.
“Only when the tariff rate of various countries/regions changes can there be corporate trade incentives, and the tariff rate between products is different, there are incentive measures for error labels. At the same time, people have been inadequate motivation. “Goldman Sachs pointed out.
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