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Tariff Evasion Surges as U.S. Scales Back China Levies

Intended to curb trade deficits through steep duties, the policy’s volatility has destabilized markets, inviting widespread evasion.

Overview

  • Importers are underreporting product values and mislabeling materials to escape higher tariffs.
  • Some Chinese firms are advising clients on routing shipments through low-tariff countries to reduce duty costs.
  • Manufacturers say these schemes undercut honest businesses by rewarding cheaters.
  • The White House trimmed Chinese duties from a brief 145% peak to 35% and paused most reciprocal levies, maintaining a 10% blanket rate for 90 days.
  • Frequent tariff adjustments—over 50 revisions since Trump took office—have generated uncertainty for U.S. businesses and consumers.