Avoiding Tariffs in a Trade War

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Commodity tariff evasion

"Hide the identity, route the goods via intermediaries through ports with no or much lower tariffs, downgrade the apparent quality and hence price. "

That's actually pretty hard to achieve. The costs of re-routing and blending/re-packing would make the end-price cost prohibitive for low-end commodity type teas, and margins aren't high enough to absorb much, if any, of that cost. More likely is that buyers would switch to other origins completely such as Vietnam or Argentina (for black/green teas respectively).

Jem McD more than 4 years ago

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