The Coalition for a Prosperous America (CPA) congratulates the Trump Administration for drawing renewed attention to the enormous scale of transshipment and tariff circumvention through its new report, The Great Transshipment Scam. The report documents how goods subject to higher U.S. tariffs are routinely rerouted through lower-tariff countries, undermining both tariff enforcement and American manufacturing.

The Administration’s findings underscore an important principle for tariff policy: tariffs intended to reshore production should generally apply globally, with selective accommodation for imports from particular countries where warranted. When a tariff applies only to a single foreign country, policymakers should presume that affected production will migrate or transship through other foreign countries rather than return to the United States. Country-specific tariffs can serve important purposes, but they should not be confused with a comprehensive reshoring strategy.

Just as important as a tariff’s geographic scope is its form. For products where we want to protect domestic production, tariffs should be set product by product as specific duties — fixed amounts based on weight or volume — rather than as ad valorem percentages of declared value. An ad valorem tariff invites the second great scheme alongside transshipment: undervaluation. Because the foreign exporter controls the invoice, a percentage-based duty can be hollowed out simply by understating the price — no rerouting required. A specific duty cannot be undervalued away. A tariff set as a fixed dollar amount by weight or volume collects the same revenue and provides the same protection whether the customs paperwork declares the shipment at full value or at a fraction of it, and it gives CBP an objective, physical basis — weight and volume — for enforcement.

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