Report Says China Uses Vietnam to Avoid Tariffs

The Washington Post reports that an effort to protect American furniture makers from unfair competiton backfired because China uses Vietnam as a conduit to avoid anti-dumping taxes first imposed in 2005. 

The import tax led Woodworth Wooden Industries in southern China to cut  exports of bedroom furniture from 400 containers to 60 — and  move operations to Vietnam.  As a result, China’s exports dropped nearly in half to $691 million while exports of the same products from Vietnam to the US soared from $151 million to $931 million.

Overall, the Post says, the US imports more bedroom furniture than before the tariffs were imposed six years ago, and less than half as many Americans are making furniture in the US.

More on Vietnam as conduit for Chinese products

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