Comment by seydor
8 days ago
for starters, countries will sell to the UK , which will resell to the US at the lowest tarriff rate. Great for the UK, but stupid.
I try to sympathize with trump's deglobalization agenda but it is probably exactly what it seems to be : a colossal stupidity.
Just shipping goods through the UK does not make them UK-origin. They have to have a "substantial transformation".
Do you have a reference for this? If they’re requiring substantial transformation, how is this assessed and enforced?
It's pretty complicated and case-by-case, and I'm no expert.
https://www.trade.gov/rules-origin-substantial-transformatio...
"Johnnie Walker Champagne"
That’s good, but if you want the really good stuff: Rolls Royce Champagne
In that example, the UK would soon run a trade surplus, and presumably the US would increase their tariff.