Chinese manufacturers are trying to avoid prices from the Trump administration by fraudulently undervaluating goods sent to the United States, exploiting a system that the American authorities fought for the police.
The Financial Times examined offers by chemicals and Chinese packaging suppliers to send goods to small American companies with “paid delivery rights” – a process known as DDP which allows the exporter to cover price.
Suppliers said the process would allow them to considerably reduce the cost of prices, as they would deliberately underestimate the goods sent or modify their descriptions to reduce the tasks due.
“We see more cases of factories in China offering to pay the customs duties for companies, then sell them goods in the United States at prices lower than what the functions should be,” said Ryan Petersen, director general of the Flexport logistics platform.
The practice threatens to undermine efforts to encourage American companies to obtain products from national manufacturers, one of President Donald Trump's tariffs. It could also temporarily isolate American consumers, from certain price increases to daily goods.
“It is nothing more than a Dodge rate,” said Dan Harris, an American lawyer who works with companies who get their supplies from China. While the federal prosecutors would take care of American companies in collusion in practice, “there is not much that (they) can do” to pursue Chinese counterparts, added Harris.
Aaron Rubin, who owns the Logistics Company SHIPURO and a distributor of martial arts equipment, brand 93, said that its Chinese suppliers “Have offered to do DDP and pay (additional prices). They said:” We are going to cover 100% of the functions “… I would never have an invoice.”
Companies such as Rubin, which have reported such approaches to customs and the protection of American borders, fear that competitors accept transactions, leaving companies respectful of laws in disadvantage.
The practice “closes my electronic commerce company”, said Rubin. “I cannot afford to pay a rate of 175% if my competition will not pay it; No one will buy my goods (more expensive). “
The owner of a food manufacturer based in California, who asked not to be appointed, said that a Chinese supplier “proposed to modify the cogs on the bills to help me escape the prices” shortly after Trump deployed the increased tasks.
“My option is to dismiss my team or participate in fraud,” said the owner.
Some of the Chinese companies that approached American companies have proposed to register as a “foreign importer”, which would make them legally responsible for the payment of rights due.
The United States is unusual among the major economies to allow foreign companies without presence in the country to publish a small obligation to register as an importance, which makes it difficult for the authorities to enforce significant penalties.
A government report in 2008 revealed that the Ministry of Justice rarely continued its fraud cases by “the important important of the file”, because “it is unlikely that recovery actions based on delinquent duties can be successfully brought (a) a foreign court”.
The problem was also highlighted in the 2025 project report of the Conservative Reflection Group Foundation, which worked as a plan for part of the Trump administration policies.
The document suggested that the US government “required that foreign record importers (IOR) make cash deposits much higher than the rights of rights established at the time of entry” or “require that IOR records enough American assets to guarantee the timely payment of tasks”.
Callie Milford, who runs the No Tox Life soap and beauty product company, was also approached by suppliers offering to dodge prices.
His Texas business is making in the United States, but gets in some packaging from China. After the Trump administration for the first time imposed higher prices on Chinese products in February, it asked its long -standing suppliers how its costs are increasing accordingly.
The majority of the responses, which have been shown at the FT, were: “Your price will not really arrive, because we will use the DPP shipment and essentially underdeftate the shipment,” said Milford.
They added that because of a recent leap in transport costs, the shipping price “would increase a little, but the amount he was going to increase was nothing compared to the prices,” added Milford.
Louisiana senator Bill Cassidy, who has long campaigned for customs reform, said that the government should “give CBP tools for properly police expeditions from China”.
Cassidy said he was working on a bill “to increase visibility in our international supply chains” and had planned to introduce it during this session of the congress.
In a press release, the CBP said that it “applies prices through a combination of legal authority, advanced systems and operational procedures” and that “following recent presidential actions, the application will include the most serious sanctions authorized by law”.
Chinese logistics directors told Nikkei Asia last month that they created screens to escape prices. The FT also indicated that Chinese exporters were trying to avoid prices by Shipping goods via third countries.
