How Much Tariffs Is China Evading

Earlier this year, we showed that evasion of the 2018-2019 tariffs via trade rerouting, underreporting of import values, and mislabeling had significantly lowered US tariff revenue. Even so, tariffs are generating a record $35 billion in government tax revenue per month.

And while the Trump administration has focused on minimizing evasion and the broad application of tariffs should lessen both mislabeling and rerouting incentives, nevertheless early signs point to some evasion of the recently implemented tariffs.