Some Chinese exporters are avoiding U.S. tariffs by falsely declaring their goods as made in third countries such as Vietnam, South Korea, and Thailand. Authorities in these nations are responding by confiscating products with falsified country of origin labels. Experts warn that while legitimate value-added production is legal, many companies are engaging in illegal practices by simply relabeling goods without significant transformation. This trend has increased as tariffs rose under former President Trump's policies, prompting further scrutiny from trade advisors and customs agencies alike.
In the face of high tariffs, some Chinese exporters are creating false country of origin labels by shipping goods through neighboring countries to avoid the imposed fees.
Experts have noted a surge in illegal rerouting methods, as Chinese firms attempt to re-label finished products as non-Chinese, despite no substantial transformation occurring.
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