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Donald Trump’s decision to impose varying tariff rates on countries has created uncertainty for exporters to the US. Companies may attempt to exploit differences in tariffs by reshuffling supply chains, but the complexity and unpredictability of enforcement pose challenges. Rules of origin are crucial in determining tariff rates, with exporters needing to prove the source of their goods to benefit from lower rates. However, navigating these rules and potentially shifting production to lower-tariff countries may be difficult and costly for companies, leading many to opt to pay the tariffs instead.
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