Chinese exporters are increasingly using “place-of-origin washing” to evade high US tariffs, which have reached up to 245% on Chinese imports under the Trump administration. This involves routing goods through third countries like Malaysia and Vietnam, where minimal processing or repackaging allows new certificates of origin to be issued, falsely labeling products as locally made.
Chinese exporters
This exploits customs loopholes, reducing tariffs and undermining US trade policies. Malaysia, with its 24% tariff rate, is a key transit hub, but the practice threatens its trade reputation, prompting calls for investigations and stricter oversight. South Korea has also reported significant origin fraud, with $20.81 million in violations uncovered in Q1 2025, leading to the creation of a task force to address the issue.
Quotes:
“But we can sell the goods to neighbouring countries, and then the neighbouring countries sell them on to the United States, and it will reduce.” – Sarah Ou, salesperson at Baitai Lighting.
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