Chinese exporters turn to 'origin washing' to dodge steep Trump tariffs

Chinese exporters are using repackaging, mislabeling, and rerouting tactics to avoid steep Trump-era tariffs, raising alarm across Asian trade hubs and customs agencies

As US President Donald Trump intensifies trade restrictions on China, Chinese exporters are resorting to increasingly sophisticated — and often illicit — methods to bypass them. After Washington imposed tariffs of up to 145 per cent on imports from China, reports of origin washing, rerouting, and product mislabeling have surged.

 

Social media ads offer 'origin washing' services

According to a report by the Financial Times, Chinese social media platforms are now filled with ads offering ‘place-of-origin washing’ services. These include repackaging goods, relabeling items, and producing fake certificates of origin to help products enter the US market while evading tariffs.

 

One exporter from a southern China lighting firm said companies are rerouting shipments through countries like Vietnam or Malaysia. Under “free on board” (FOB) terms, liability transfers to the buyer once the goods leave port, shielding the exporter from legal exposure. 

 

How origin washing works: A look at the grey market workaround

Origin washing refers to disguising the true country of origin of goods. To qualify for a new origin under US law, products must undergo substantial transformation, adding material value. However, many Chinese exporters are now lightly modifying or simply repackaging goods in third countries, then exporting them as “Made in Vietnam” or “Made in South Korea.”

 

These services often include:

• Document preparation
• Local warehousing
• Coordination with proxy factories
• New certificates of origin

South Korea flags $21 million in false “Korean-made” exports

 

In Q1 2025 alone, South Korea’s customs agency reported nearly $21 million worth of falsely labeled exports, nearly equaling the total for all of 2024. Most were Chinese goods destined for the US. 

 

Other countries are also reacting.

• Vietnam and Thailand have tightened scrutiny on raw material origins
• Malaysia and China have not yet issued formal comments

 

Trump’s tariff escalation squeezes Chinese exporters

Trump’s aggressive trade policies, including ‘reciprocal tariffs’ announced on April 2, have dealt a heavy blow to Chinese manufacturers. The pressure is especially intense for small and mid-sized firms dependent on US buyers. Unable to absorb the full brunt of tariffs, they are increasingly drawn to grey-area workarounds. 

 

US-China trade tensions show no signs of slowing

While Beijing has acknowledged receiving a US request for trade talks, the situation remains tense. Retaliatory measures from both sides have created a volatile climate for global supply chains, especially in electronics, textiles, and light manufacturing.