Challenges in Collecting Tariffs on Imports
President Trump has imposed tariffs on imports to boost U.S. manufacturing and revenue, but collecting these tariffs is challenging due to agencies being overwhelmed and exporters evading taxes. Trade with China has led to increased smuggling and transshipping to avoid tariffs. Customs and Border Protection lacks resources to enforce tariffs effectively, leading to widespread trade fraud. Business owners struggle to combat transshipping without adequate government support.
Key Points
- Increased smuggling and transshipping due to higher tariffs
- Customs and Border Protection faces challenges in enforcing tariffs
- Business owners struggle to combat trade fraud
Pros
- Tariffs aim to boost U.S. manufacturing and revenue
Cons
- Agencies overwhelmed and understaffed
- Exporters evading taxes through transshipping
- Customs and Border Protection lacks resources to enforce tariffs effectively