Chinese Exporters Undervalue Goods to Evade US Tariffs

Chinese exporters are increasingly evading U.S. tariffs by routing goods through third countries and employing tactics such as 'place-of-origin washing' and falsifying customs documentation, making it difficult for American authorities to enforce trade restrictions. These schemes allow Chinese companies to offer U.S. importers artificially low prices, undercutting honest businesses that pay full duties and creating unfair market conditions. Logistics firms and social media platforms are actively advertising such services, with countries like Malaysia, South Korea, and Vietnam becoming common waypoints for these transshipped goods. U.S. Customs has struggled to counteract these practices, which have surged since the Trump administration imposed high tariffs on Chinese imports, sparking a reciprocal response from China. This widespread tariff circumvention undermines U.S. efforts to restore domestic manufacturing and puts compliant American businesses at a disadvantage. Regional authorities in Asia have begun tightening customs checks, but the proliferation of fraudulent origin certificates continues to challenge international enforcement.