As the United States tightens its grip on Chinese imports with punishing new tariffs, a murky trade workaround is making waves—this time, with “Made in Malaysia” stamped across it.
Online retailers across the globe are reporting a sharp surge in unsolicited offers from foreign logistics firms promising to help them sidestep steep U.S. tariffs. These questionable services—often pitched via social media—include falsifying shipment values, obscuring origins, and re-routing goods through third countries such as Malaysia to exploit lower duties.
“We can help you save on costs,” reads one message from a freight firm, offering to understate the value of an incoming shipment while acting as the importer of record.
While such schemes aren’t new, their brazenness has escalated since former U.S. President Donald Trump slapped higher tariffs on China earlier this month. Now, merchants say the offers are not only more frequent, but increasingly aggressive.
Aaron Rubin, an online seller of martial arts gear, recounted an offer from a freight brokerage that proposed declaring a shipment valued at US$30,000 as merely US$10,000. The trick would have slashed his tariff bill by nearly US$29,000. Rubin refused—and reported the firm to U.S. Customs—but fears less scrupulous competitors may give in to temptation.
“If people start saving US$10,000 in tariffs per container, it quickly adds up to billions,” warned Rubin, who also runs the logistics software company ShipHero.
A Chinese freight broker, speaking anonymously to avoid scrutiny, confirmed that many clients are now opting to ship Chinese-made goods through Malaysia, claiming them as locally manufactured—where tariffs are about 24%, far below the over 125% levied on Chinese goods. Others, they say, are pausing shipments altogether, watching and waiting to see if U.S. trade policies shift again.
While U.S. Customs and Border Protection (CBP) declined to comment on enforcement strategies, experts warn the risk-reward calculus for desperate businesses is shifting. “Some are facing existential crises,” said William George of Import Genius. “They could be weighing the risk of paying fines against losing their livelihoods entirely.”
Under U.S. law, falsifying customs documentation—whether it’s undervaluing shipments or misdeclaring origins—is illegal and punishable by both civil and criminal penalties. But enforcement relies heavily on tip-offs and self-disclosure through an online portal, making oversight especially challenging.
