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South Korea uncovers Chinese goods relabelled for US tariff evasion on the rise

Seoul’s customs agency found millions of US dollars worth of Chinese exports were disguised to dodge Trump’s hefty duties

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South Korean police monitor a suspect shipment being unloaded at a port in Gangneung earlier this month. Officials have warned that foreign companies might try to use South Korea to bypass US tariffs. Photo: Korea Customs Service/Yonhap/AFP
Reuters
South Korea has found rising attempts to disguise foreign products as Korean exports, mostly from China, to avoid US President Donald Trump’s sweeping tariffs, its customs agency said on Monday.

The Korea Customs Service said it has found 29.5 billion won (US$20.7 million) worth of country-of-origin violations from the first quarter, with US-bound shipments accounting for 97 per cent of the total, after a special investigation last month.

That compared to a total of 34.8 billion won worth of violations for all of 2024, among which US-bound shipments accounted for 62 per cent.

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Trump, who took office in January, has imposed significant tariffs on various products and countries, including those on China that began to rise from February.

Shipping containers are seen stacked at a pier in South Korea’s largest port city of Busan. Photo: Yonhap/EPA-EFE
Shipping containers are seen stacked at a pier in South Korea’s largest port city of Busan. Photo: Yonhap/EPA-EFE

“There was a rise in disguised export attempts during Trump’s first presidency and we expect there to be a similar trend,” said Lee Kwang-woo, investigation planning director at the Korea Customs Service.

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Anticipating increased risks, authorities conducted the latest investigation preemptively to prevent illegal exports. They have already found signs of such attempts to avoid Trump’s tariffs from the first quarter, Lee said during a media briefing.

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