Chinese Exporters Accused of Undervaluing Goods to Dodge U.S. Tariffs Amid Growing Trade Tensions

19 May 2025

China Shipping containers are seen at the port of Oakland, as trade tensions continued over U.S. tariffs with China, in Oakland, California, U.S., May 12, 2025. Carlos Barria | Reuters

As the Trump administration ramps up tariffs on Chinese goods, in some cases reaching as high as 145% reports have emerged that certain Chinese exporters are using deceptive tactics to avoid these steep duties. According to multiple sources, including customs officials and trade analysts, exporters are allegedly undervaluing cargo and mislabeling goods in an effort to circumvent the new tariff regime and maintain their presence in the competitive U.S. market.

By declaring artificially low shipment values or by misclassifying products under tariff-free or lower-tax categories, these exporters aim to minimize their tax burden at U.S. ports. This not only allows them to keep prices lower for American buyers, but also undermines the purpose of the tariffs: to protect U.S. manufacturers and pressure China on border trade issues, including intellectual property theft and state subsidies.

U.S. customs authorities are increasingly aware of these practices and have begun intensifying inspections and compliance checks at entry points across the country. However, enforcing such complex trade regulations on a large scale remains challenging. Shipments must be carefully scrutinized, and determining intentional misdeclaration can be time-consuming and difficult to prove.

Industry leaders in the U.S. have raised concerns that this practice unfairly disadvantages American companies that comply with all trade laws. Small and mid-sized businesses in particular may find it hard to compete with cheaper imports that evade tariffs through dishonest reporting.

Trade experts emphasize that more robust enforcement, increased data sharing between nations, and digital tracking technologies are needed to counteract this growing problem. They also warn that the prevalence of such evasion tactics may ultimately weaken the effectiveness of the tariffs and erode public support for trade restrictions.

This development adds a new layer to the already strained U.S.-China trade relationship. While tariffs have become a central component of the Trump administration’s trade policy, incidents like these demonstrate how global supply chains and loopholes can make it difficult to fully control the impact of such measures.

As tensions continue to rise and both sides dig in on their positions, the U.S. government may be forced to take further steps including legal action and heightened inspections to ensure that the rules are enforced and domestic producers are protected.