BRICS and transshipments: Combating bad actions by bad actors

OPINION:

President-elect Donald Trump has recently unveiled a decisive plan to impose 100% tariffs on BRICS nations. This bold and necessary step aims to protect America’s economic sovereignty, especially in the face of these nations’ contemplation of a rival currency to the U.S. dollar. With the dollar as the cornerstone of global trade, any erosion of its dominance by adversaries would weaken our nation’s strategic position.

The BRICS nations — which include Brazil, Russia, India, China and South Africa — aim to undermine a pillar of U.S. power by diminishing the dollar’s role as the world’s reserve currency. Such a shift could destabilize global markets, increase U.S. borrowing costs and erode the country’s ability to impose effective sanctions or finance strategic initiatives.

This coordinated effort by economic competitors leveraging unfair competitive practices and nations undermining U.S. interests underscores the urgency of protecting the dollar’s status. Policies such as Mr. Trump’s tariffs on BRICS nations are not just about trade. They are a necessary defense of America’s financial sovereignty and a clear signal that any attempt to weaken the dollar’s dominance will be met with decisive action.

Mr. Trump’s policy sends a clear message: The United States will not tolerate bad actions by bad actors seeking to undermine the global financial order. This is true not only for currency matters but also for the nuts and bolts of international trade.

China’s recent behavior highlights the urgency of these measures. The New York Times recently outlined how China targets U.S. companies such as Skydio with supply chain disruptions. Beijing has shown its willingness to engage in economic manipulation by exploiting loopholes in trade rules.

One particularly damaging tactic in global supply chain manipulation by China is “transshipment,” where goods are rerouted through third-party nations to mask their origin and evade tariffs. This deceptive practice enables bad actors to avoid consequences and floods the U.S. market with cheap imports, undercutting American industries.

Sen. Marco Rubio, Mr. Trump’s nominee for secretary of state, recently proposed legislation to bar Chinese manufacturers from evading tariffs by setting up production sites in countries such as Mexico, Vietnam and Malaysia. Some nations sought as partners by the Chinese lack democracy, the rule of law and trade agreements with the U.S. The Florida Republican’s proposal responds to a growing trend where Chinese companies shift production to nations with lower tariff barriers, effectively bypassing trade penalties meant to level the playing field.

The American Medical Manufacturers Association continues educating our policymakers and warns that China’s use of transshipments and other harmful trade practices seriously threaten U.S. industries. These tactics disproportionately harm critical sectors including U.S.-made personal protective equipment, or PPE, and medical supplies, where unfair practices persist despite legislative efforts and repeated warnings. Transshipment, violations of the de minimis rule and similar actions undermine efforts to rebuild domestic manufacturing, endangering jobs and leaving the U.S. unprepared for future health care and public safety challenges.

There is a clear path forward to protect U.S. manufacturing, especially in PPE and medical supplies. Mr. Trump’s tariff strategy, initiatives like Mr. Rubio’s proposed legislation and the Biden administration’s expansion of Section 301 tariffs are critical steps toward economic resilience. In addition, vigorous enforcement against anticompetitive and deceptive trade practices is necessary to protect strategic industries.

When we reduce reliance on adversarial nations, the United States can strengthen critical industries, safeguard public health and safety and reinforce its position as a global leader. The stakes are too high to allow bad actors to continue their harmful practices unchecked. By holding them accountable and prioritizing domestic manufacturing, America can secure its economic future and readiness to meet any challenge.

• Eric Axel is the executive director of the American Medical Manufacturers Association, the only organization representing domestic manufacturers of PPE and medical supplies. AMMAUnited.org.