A new 20% tariff on Vietnamese imports might look like a sharp escalation — but beneath the surface, it could be playing right into China’s long-term strategy.

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🧾 The Official Line:

Trump’s new deal introduces a 20% tariff on goods imported from Vietnam — up from the current 10%, and significantly less than the threatened 46%.
The stated goal? Block China from using Vietnam as a backdoor into the U.S. market.

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🧪 The Reality Check:

But here’s the catch: China already saw this coming.

Beijing isn’t just dumping goods into Vietnam and relabeling them. It’s engaged in origin washing — the process of sending raw materials to Vietnam, then having them manufactured into finished products (think clothing, smartphones, electronics), and finally shipping them to the U.S. as “Made in Vietnam.”

That makes these exports technically Vietnamese, even though the materials — and in many cases the ownership — remain Chinese.

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🧠 The Strategic Play:

Companies like BYD, one of China’s EV powerhouses, relocated part of their supply chain to Vietnam years ago, anticipating exactly this kind of protectionist move.

So while Washington gets a headline: “Trump slaps 20% on Vietnam,”
Beijing quietly nods: “We’re already ahead of you.”

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💼 Why This Matters for Investors:

1. Tariffs aren’t always about where — but how. Supply chains are adaptive.
2. Chinese firms have mastered the global game. Origin-washing isn’t a glitch — it’s a strategy.
3. The markets may misprice geopolitical headlines. Behind protectionism lies a reshuffling of production, not a halt.

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📉 A tariff war doesn’t always hit the target. Sometimes, it just forces a new route — one the opponent already mapped.

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📩 Message me if you’re ready to think like the 1%.

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With experience and realism,
George Zimmerman
Your broker & market partner