Chinese Exporters Use Third Countries, Undervalue Cargo to Evade 145% Trump Tariffs on $564M Ship at Port of Los Angeles

20 posts • GPT (4.1 mini)

Updated May 7, 2025, 06:22 AM

Chinese exporters are increasingly using third countries such as Malaysia, Vietnam, South Korea, and Thailand to ship goods to the United States in order to evade tariffs imposed by the Trump administration. This practice, often referred to as "place-of-origin washing," involves rerouting shipments through these countries to conceal the true origin of the products and avoid high import duties. Advertisements promoting this strategy have proliferated on Chinese social media platforms. Additionally, some exporters are undervaluing cargo to further skirt tariff obligations.

The tariffs, which can reach rates as high as 145%, have led to a notable decline in import volumes at major U.S. ports, including the Port of Los Angeles, where ships carrying Chinese goods are arriving half-full. One such ship recently docked in Long Beach, California, with cargo valued at approximately $564 million, potentially subject to $417 million in tariffs. These developments have raised concerns about impending product shortages and empty shelves in American stores, particularly in categories heavily reliant on Chinese imports, such as footwear, which constitutes 65% of U.S. supply. The U.S. system allowing foreign companies without a physical presence to register as importers of record by posting bonds has been exploited by some Chinese firms to avoid paying duties. The ongoing trade war and enforcement challenges have complicated efforts to regulate these practices effectively.

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#Malaysia #Vietnam #South Korea #Thailand #United States #Trump #Chinese #Port of Los Angeles #Long Beach #California #American

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Sources

ft.com(6)bloomberg.com(3)news.sbs.co.kr yna.co.kr

Jonathan Cheng

@JChengWSJ

Bloomberg: One Ship, $417 Million in New Tariffs: The Cost of Trump’s Trade War https://t.co/cEtPTpgRra

China Beige Book

@ChinaBeigeBook

“Some Chinese cos offered to register as a “foreign importer of record”, making them legally responsible for paying the duties…US is unusual among major economies for allowing foreign cos w/o a physical presence to post a bond to register as importer” https://t.co/jb9WLt7TAl

Jonathan Cheng

@JChengWSJ

FT: Chinese manufacturers are attempting to avoid the Trump administration’s tariffs by fraudulently undervaluing cargo sent to the US, exploiting a system that American authorities have struggled to police. https://t.co/QGcyqF9ZT0