Can I Avoid New U.S. Tariffs By Routing Goods Through Different Countries? (Spoiler Alert: No)

With the recent surge in tariffs and imposition of differentiated tariffs for different countries of origin (i.e., higher tariffs for goods originating from China than from neighboring countries and potentially other countries subject to "reciprocal tariffs"), businesses are under pressure to find ways to minimize their exposure to these additional costs.

We are being asked whether moving goods through different locations could be an effective strategy to avoid tariffs. This could take several forms, including simply labeling goods as originating in a country with lower tariffs when the goods were actually manufactured elsewhere; routing products through ports in an intermediary country with lower tariffs and declaring that country as the origin (transshipment); or performing minor processing or assembly in a third country and claiming that as the country of origin. While these approaches may seem like clever workarounds, they carry significant legal risks and could