Commentary: US ‘transshipment scam’ narrative raises troubling prospect of a purity test for Southeast Asia
Commentary suggests that the US administration's aggressive stance against 'illegal transshipment' may be evolving into a broader purity test for trade partners. Analysts warn that labeling diverse trade practices as scams could lead to increased tariffs and strained relations with Southeast Asian nations.
Why it matters
This shift in trade policy signals a potential move toward protectionism that could disrupt global supply chains and regional economic stability.
If the US sees all trade as a potential scam, trading partners would do well to prepare for more tariffs, says Hinrich Foundation’s Deborah Elms.
Docked cargo ships are loaded with shipping containers at Port Elizabeth, New Jersey, US, on Jul 12, 2023. (File photo: Reuters/Mike Segar)
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