A 30-year-old piece of US legislation called the “first sale rule” is offering companies an opportunity to avoid Trump’s tariffs by moving goods through Hong Kong. Illustration by Perry Tse

Donald Trump’s trade war tariffs send firms to Hong Kong for a little-known legal loophole

  • The US ‘first sale’ rule allows duties to be levied only on the initial sale from the manufacturer to the initial wholesaler
  • The rule is legal in the US but requires voluminous paperwork
Topic |   China economy

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A 30-year-old piece of US legislation called the “first sale rule” is offering companies an opportunity to avoid Trump’s tariffs by moving goods through Hong Kong. Illustration by Perry Tse
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