China uses fake ‘Made in Korea’ labels to bypass Trump Tariffs

South Korea’s customs agency reported a rise in efforts to disguise foreign products, mainly from China, as Korean exports to bypass U.S. President Donald Trump’s tariffs.

The South Korean Customs Office has reported, an increase in efforts to export Chinese products to the United States with fake “Made in Korea” labels. According to Reuters on Monday, the agency recorded $20.8 million worth of violations in the first quarter of the year, highlighting a significant rise compared to last year’s total of $34.8 million.

The majority of these violations involve exports to the U.S., with over 97% of cases related to goods being misrepresented as originating from South Korea. One of the most recent violations involved the export of cathode materials used in battery manufacturing, valued at 3.3 billion won, which were imported from China and labeled as “Made in South Korea.”

In another incident, Chinese-manufactured surveillance cameras worth 19.3 billion won were falsely re-labeled and shipped to the U.S. as Korean-made products after being packaged in South Korea. This issue raises concerns about the integrity of product origin labeling in international trade.

The U.S. has been increasing tariffs on products from both China and South Korea, pushing Chinese companies to find ways to bypass these tariffs through South Korea. These rising tariffs, which were significantly ramped up during President Trump’s second term, have prompted Chinese businesses to exploit loopholes.

In response, South Korean authorities have formed a special task force aimed at preventing illegal exports and are implementing new measures to protect local producers. Customs officials are working to enhance their monitoring and control systems to prevent future mislabeling and protect the integrity of the country’s export processes.

To address these issues, the South Korean government is considering stricter penalties for companies found guilty of falsifying product origins. The recent surge in violations highlights the need for more robust regulatory measures to combat trade fraud, especially amid rising global tensions over tariffs.

The increased efforts by South Korea to curb these violations are crucial in maintaining trade relations with the U.S. and ensuring fair practices in international trade. With growing scrutiny on global supply chains, stronger regulations will help restore trust in product labeling and ensure a level playing field for all manufacturers.

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