Made in Malaysia? Trump’s China tariffs spark rise in offers to dodge US duties

Businesses selling everything from athletic apparel and furniture to home healthcare items have been approached by overseas logistics firms offering to fake the value of shipments to reduce tariffs or divert them through a country with lower levies than China, according to five people interviewed by Bloomberg.

The offers typically arrive by social media. “We can provide the solution to help you save your cost,” said one firm, which then offered to serve as the importer for a coming shipment and declare a lower value.

The online sellers interviewed said they declined to participate but worry that the shock and desperation unleashed by Trump’s trade war could prompt their counterparts to try and cheat the system.

Aaron Rubin, who sells martial arts gear online, said he received an offer from a freight brokerage to import one of his shipments from China. The brokerage offered to submit paperwork to customs stating the shipment was worth US$10,000 even though the merchandise is worth about US$30,000, said Rubin, who shared screenshots of the correspondence with Bloomberg. The undervaluation would reduce the tariff bill by US$29,000.

Rubin said he declined the offer and submitted a complaint about the firm to customs. He is worried companies based in other countries with shell operations in the US will offer tariff-dodging services and be out of reach of US law enforcement.