Are Chinese firms using 'Made in Korea' labels to bypass Trump tariffs?

Customs officials in South Korea have found that 97 percent of falsely labelled Chinese goods were destined for the United States

Chinese companies are using deceptive practices to evade steep US tariffs. They are reportedly routing exports through South Korea and falsely labelling them as locally made, the Korea Customs Service recently announced, as reported by Nikkei Asia.

 

Korean authorities on Monday said it had discovered 29.5 billion won ($20.7 million) worth of fraudulent exports in the first quarter of 2025 alone — nearly matching the 2024 full-year total of 34.8 billion won. It further found that 97 per cent of the falsely labelled goods were headed to the United States.

 

The US government, under the administration of President Donald Trump, has imposed tariffs of up to 145 per cent on Chinese imports. In comparison, South Korean exports to the US currently face a relatively moderate 10 per cent tariff, as part of a 90-day suspension of reciprocal duties.

 

 

To exploit this disparity, Chinese firms have been allegedly disguising the origin of their products.  ALSO READ: China denies trade talks with US, contradicts Trump's tariff war claims

 

One notable case involved Chinese-made mattresses — subject to US anti-dumping duties — being stored in a South Korean warehouse operated by a company registered under a Chinese national. The goods were then exported as South Korean products. Other examples include Chinese electrode materials for rechargeable batteries being relabelled in South Korea, and surveillance camera parts being assembled locally to qualify as South Korean exports.

 

South Korea’s credibility at threat

Authorities warned that such practices not only damage South Korea’s credibility in global markets but also threaten its domestic industries. A special crackdown team has been formed to investigate and prevent further abuse.

 

US-South Korea trade talks

The news comes as trade negotiations between South Korea and the US. A delegation from South Korea is meeting with its US counterparts on Thursday. According to a report by Reuters, shipbuilding, energy, and defence costs may be on the agenda. South Korea is facing its own domestic troubles. Yoon Suk Yeol was recently removed from the presidential position after declaring martial law in the country. Han Duck-soo – diplomat, politician, and economist – has stepped in as acting president.

 

The Wall Street Journal reported that the Trump administration intends to push for stronger measures during the talks, urging allies not to serve as backdoors for Chinese products. While the White House may consider reducing tariffs to between 50-65 per cent, officials stress that any reductions will depend on progress in direct talks with Beijing. China, however, has rejected unilateral pressure, vowing to take “reciprocal countermeasures” if its interests are compromised.