Vietnam Cracks Down on Illegal Transshipment Amid U.S. Tariff Tensions

Vietnam's trade ministry has initiated measures to counter illegal transshipment of goods, aiming to evade U.S. tariffs. With nearly 40% imports from China, the directive urges enhanced inspection of imports and factory audits to confirm their origin. This move follows rising tensions and potential hefty tariffs from the U.S.

Vietnam's trade ministry has launched a directive to tackle the illegal transshipment of goods to the United States and other nations, as efforts to avoid significant U.S. tariffs intensify, reveals a document reviewed by Reuters. Dated April 15, the directive underscores the likelihood of trade fraud escalating amidst growing tariff-related tensions.

The document cautions that unchecked fraud could complicate avoidance of sanctions on imports. While it doesn't specify fraud-originating countries, Vietnam's import data shows nearly 40% of goods are from China, with the U.S. accusing Beijing of using Vietnam as a transshipment hub to circumvent tariffs.

In response to the Trump administration's suspended 46% tariffs, Vietnam's directive prompts trade ministry, customs, and other agencies to rigorously inspect imported goods, particularly raw materials for production. Prime Minister Pham Minh Chinh directed officials to curtail trade fraud and strengthen U.S. relations ahead of expected tariff discussions.

(With inputs from agencies.)