Tariff Workarounds: $300B in Goods Slip Through Via Southeast Asia Routes

Key Details About $300 billion in goods annually are sidestepping Trump administration tariffs by routing through Southeast Asia and Mexico, according to data from supply chain platform Altana. Businesses are redirecting shipments through countries with lower tariff rates, then leveraging the U.S.-Mexico-Canada Agreement to enter the U.S. at reduced costs. Suspect transactions surged 76% in the first 10 months of 2025 compared to 2024, jumping from 100 million to 188.5 million. Why It Matters These rerouting patterns expose enforcement gaps as tariff policy evolves and trade negotiations begin. While transshipment itself isn't illegal, the issue centers on whether goods meet "rules of origin" requirements, particularly the "substantial transformation" standard needed to qualify for preferential USMCA treatment. Many shipments show no evidence of meaningful manufacturing changes at intermediary stops. What's Next Altana's transshipment detection technology, already used by U.S. Customs and Border Protection, may face increased scrutiny. The surge in suspicious activity suggests compliance challenges ahead as the administration pursues reshoring goals and structural reduction of Chinese production dependence. Drivers should monitor how enforcement actions may affect supply chain routing and freight volumes.