Trump Administration Imposes 40% Tariff on Goods Rerouted Through Third Countries

The WHITE House announced a sweeping 40% tariff on goods rerouted through third-party countries, primarily targeting Chinese products avoiding existing duties. Buried within a broader list of global tariffs ranging from 10% to 41%, the measure leaves key Southeast Asian exporters in limbo as they await clarity on transshipment definitions.

Vietnam, Thailand, Cambodia, Indonesia, and Malaysia—beneficiaries of earlier supply chain shifts from China—now face uncertainty. Many manufacturers in these countries still rely on Chinese components, raising questions about whether their exports will incur the steep new penalty. Thailand’s Deputy Commerce Minister Chantawit Tantasith emphasized the need for US clarification on rules of origin, noting the country’s 19% tariff maintains regional competitiveness.