How China’s Exporters Are Outsmarting Trump’s Tariffs—And Why Wall Street Didn’t See It Coming

Small Chinese exporters aren’t just surviving Trump’s trade war—they’re thriving. By rerouting shipments through Vietnam, mislabeling goods, or leveraging crypto payments, these nimble players are slicing through tariffs like a hot knife through butter.

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Officials across Asia say more companies are bypassing tariffs

South Korea’s customs service last month reported finding 29.5 billion won (about $21 million) worth of imports with false origin labels in the first quarter, mostly Chinese goods bound for the United States. “We are seeing a sharp increase in recent cases where our country is used as a bypass,” the agency said, noting many cartons were restamped “Made in Korea.”

Vietnam’s industry and trade ministry has urged local manufacturers and export groups to tighten checks on raw‑material origins and stop fake certificates. Thailand’s foreign trade department rolled out extra inspections in April aimed at U.S.‑destined shipments.

Two freight forwarders told the Financial Times they can move containers to Port Klang, Malaysia, unload them, retag the cartons and reload them with Malaysian paperwork. They rely on partner plants in Malaysia that help secure the new certificates. “The U.S. must know of it,” one agent said. “It cannot get too crazy so we are controlling the amount.” The other added, “Malaysian customs are not very strict.”

Some exporters are mixing expensive items with cheaper ones in a single consignment

A consultant who advises exporters said origin‑washing is one of two main tactics now used to blunt Trump’s tariffs. The second involves mixing expensive items with cheaper goods in one consignment, then declaring the average price so the duty bill is lower.

The work‑arounds also unsettle American retailers. A senior executive at one of Amazon’s ten largest independent sellers said they had already seen shipments arrive with altered origin papers, risking confiscation. The executive turns down suppliers’ offers to handle U.S. import paperwork and pay duty based on factory cost, not retail value. “You’re putting a lot of trust in a Chinese supplier,” the executive said.

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