Globalization
Is China evading US tariffs through Mexico and Canada?
The document analyzes whether China evades US tariffs through transshipments via Mexico and Canada, incorporation into North American supply chains, and investment in both countries. Evidence of evasion is found mainly through Mexico, and to a lesser extent, Canada. Adjusting trade data for price increases, it is concluded that while evasion is reduced, evidence of this behavior still persists.
September 23, 2025