{"id":663415,"date":"2025-04-08T00:00:00","date_gmt":"2025-04-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/04\/08\/can-companies-find-a-way-around-hefty-trump-tariffs\/"},"modified":"2025-04-08T00:00:00","modified_gmt":"2025-04-08T00:00:00","slug":"can-companies-find-a-way-around-hefty-trump-tariffs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/04\/08\/can-companies-find-a-way-around-hefty-trump-tariffs\/","title":{"rendered":"Can companies find a way around hefty Trump tariffs?"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>How can companies exploit rules of origin to get around hefty Trump <\/strong><strong>tariffs? <\/strong>With US President Donald Trump introducing varying tariff rates on imports from different countries, businesses have been <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/95f24517-baf6-412d-8c68-6695fa55933d\" style=\"\" rel=\"noopener\">on the lookout<\/a> for tactics to avoid <a target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/news\/which-products-most-affected-tariffs\/\" style=\"\" rel=\"noopener\">increased costs<\/a> and <a target=\"_blank\" href=\"https:\/\/www.investors.com\/news\/trump-tariffs-stock-market-investors-global-supply-chains-trade-war\/?utm_source=chatgpt.com\" style=\"\" rel=\"noopener\">global supply chain disruption<\/a> stemming from the trade war the US leader launched in the past months. As a result, loopholes in rules of origin have, to some extent, been shown to be a good way to \u201ccheat the system,\u201d <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/2184c2d7-9aca-4371-b4a1-773320eeb059\" style=\"\" rel=\"noopener\">Financial Times<\/a> reports.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>SOUND SMART- <\/strong>The <a target=\"_blank\" href=\"https:\/\/www.wto.org\/english\/docs_e\/legal_e\/ro_e.htm\" style=\"\" rel=\"noopener\">rules of origin<\/a> \u2014 put in place by the World Trade Organization \u2014 provides simple guidelines to help determine where a product comes from, especially after it crosses borders. The rules are essential to determine tariffs and to decide whether or not an item qualifies for special treatment under trade agreements. The rules are a way to <a target=\"_blank\" href=\"https:\/\/www.customsmanager.org\/post\/guide-to-non-preferential-rules-of-origin-deciding-duty-rates-restrictions-quotas?utm_source=chatgpt.com\" style=\"\" rel=\"noopener\">ensure<\/a> rules of origin are transparent and \u201cdon't obstruct, suppress, or disrupt global trade.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>So, how can they be taken advantage of? <\/strong>Companies can shift their entire supply chains to countries subject to lower Trump tariffs as a way to \u201cexploit the system,\u201d trade policy lead at consultancy firm Flint Global Sam Lowe told the FT. He explained that products must see a substantial transformation in the export country for it to qualify for the lower tariff imposed on the export country. As the FT puts it, raw vegetables won\u2019t qualify for lower tariffs \u2014 even if they get chopped up, frozen, or packed in the export country \u2014 while butter, flour, and milk would if they are transformed into cakes and cookies in the export country. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What could it all mean for Egypt? <\/strong>Since Egypt was slapped with only the blanket 10% duty \u2014 making it one of the least affected countries \u2014 it could potentially become a more attractive investment destination for international manufacturers looking to maintain access to US markets without the hefty tariffs. Some industry insiders <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/87ed0d2b-27c2-4f83-bd37-3d4e5251322d\/what-do-trump-tariffs-mean-for-egyptian-industries%3F\" style=\"\" rel=\"noopener\">we previously spoke to<\/a> appear too optimistic, with one expecting around USD 2 bn in new investments in the ready-made garment industry as a result of the move. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Some don\u2019t think the hassle is worth it: <\/strong>Despite potential savings, many companies may opt to bear the tariffs over exploiting this loophole because being able to prove that a product has been transformed in the export country is uncertain, with the final say lying with the US Customs.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s next? <\/strong>With the knowledge of how unpredictable Trump and his administration tend to be, many companies are adopting a wait-and-see approach, founder of Trade and Borders consultancy Anna Jerzewska told the salmon-colored paper.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Companies can shift their entire supply chains to countries subject to lower tariffs as a way to \u201cexploit the system\u201d<\/p>\n","protected":false},"author":1,"featured_media":663416,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7215],"tags":[104,633,638,2403,132,715],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-663415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-your-commute","tag-economy","tag-enterprisepm","tag-for-your-commute","tag-global-economy","tag-trade","tag-world-trade-organization","wpautop","entry"],"acf":{"mongo_id":"f4233fc5-00d8-419e-a1c3-359563b1ea20","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/4\/325.jpg","photo_position":"above","homepage_title":"","full_issue_title":"","related_issue":[663410],"teaser":"Companies can shift their entire supply chains to countries subject to lower tariffs as a way to \u201cexploit the system\u201d","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/4\/.f4765b50-ff6d-4311-8ceb-e1f3e91062c2.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Can companies find a way around hefty Trump tariffs? 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They\u2019re not always Vietnamese. Vietnamese tech exports to the US increased by over 70% between May 2018 and May 2019, but many of these goods actually came from China, the Wall Street Journal says (watch, runtime: 04:27).\u2026","rel":"","context":"In &quot;Worth watching&quot;","block_context":{"text":"Worth watching","link":"https:\/\/enterpriseam.com\/egypt\/category\/lifestyle\/worth-watching\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/8\/97.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":663257,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/04\/06\/how-will-us-tariffs-affect-egyptian-gamers\/","url_meta":{"origin":663415,"position":2},"title":"How will US tariffs affect Egyptian gamers?","author":"enterpriseam admin","date":"6 April 2025","format":false,"excerpt":"The immediate effect of US tariffs on Egyptian gamers will likely manifest in decreased availability and increased console prices","rel":"","context":"In &quot;FOR YOUR COMMUTE&quot;","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/4\/95.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":660747,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/02\/17\/trumps-reciprocal-tariff-drive-is-throwing-international-firms-for-a-loop\/","url_meta":{"origin":663415,"position":3},"title":"Trump\u2019s reciprocal tariff drive is throwing international firms for a loop","author":"enterpriseam admin","date":"17 February 2025","format":false,"excerpt":"Many see Trump\u2019s tariff threats as a blunt protectionist measure, others believe they could serve as a negotiation tactic","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/2\/1604.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":591708,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/15\/us-china-announce-preliminary-trade-agreement\/","url_meta":{"origin":663415,"position":4},"title":"US, China announce preliminary trade agreement","author":"enterpriseam admin","date":"15 December 2019","format":false,"excerpt":"US, China announce \u201cPhase One\u201d trade war truce: US and Chinese trade officials have reached a preliminary trade agreement that will scrap bns of USD in tariffs and delay others. The US agreed to suspend 15% tariffs that were set to take hold today on USD 160 bn in Chinese\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/12\/2104.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":555988,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/05\/global-trade-forecasts-for-the-coming-year-are-on-the-up-wto-says\/","url_meta":{"origin":663415,"position":5},"title":"Global trade forecasts for the coming year are on the up, WTO says","author":"enterpriseam admin","date":"5 October 2021","format":false,"excerpt":"Things are looking up for global trade: The World Trade Organization (WTO) raised its 2021 and 2022 global merchandise trade forecasts, with the 2021 prediction currently sitting at 10.8% from the previously forecasted 8% and 2022 forecasts increasing to 4.7% from 4%, according to WTO statement. \u201cThis strong growth underscores\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/663415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=663415"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/663415\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/663410"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/663416"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=663415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=663415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=663415"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=663415"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=663415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}