The ‘Sleeper Issue’ at the Heart of Trump’s Trade War on China
- noemieviterale
- Oct 27
- 1 min read
Concern is increasing throughout Southeast Asia as U.S. officials, intent on slowing China, have yet to say how they will define the origin country of imports.
Trump administration officials have been vocal about setting one rule-of-origin target for the region. They have focused on 30 percent: Any product containing more than that level of foreign parts or content sent to the United States would face the special transshipment tariff. While discussions are fluid, one thing is clear: For much of Southeast Asia, such a low figure would be difficult to meet.
Even if the administration clarifies a final number, for many companies and governments there are many more questions. What counts as foreign content? Does it include foreign investment in a factory? A foreign-branded machine? Foreign workers? In recent years, many factories from China have moved some of their operations to countries like Vietnam but have created local supply chains and employ local workers.
And whose role will it be to police this new content rule?
“You’re talking about creating an entire new policing agency for exports to the U.S.,” said Steve Okun, chief executive of APAC Advisors, a geopolitical consulting firm.
