Executive Summary
Chinese exporters are extensively using “origin washing” and other deceptive practices to evade steep US tariffs imposed amid recent trade tensions. These methods involve rerouting goods through third party countries, primarily in Southeast Asia, and falsifying documents to conceal their true origin. Widely promoted on social media platforms, such practices are undermining the intended impact of tariffs. Furthermore, origin washing is complicating enforcement efforts for both the US and intermediary transit nations. In response, Asian nations–under US pressure and mindful of their own trade reputations–are clamping down on these fraudulent activities through intensified inspections and stricter regulations. It is likely that the US will continue to implement comprehensive countermeasures, including advanced tracking systems, to combat these evasive tactics.
Key Judgements
KJ-1. Chinese exporters’ widespread adoption of origin washing and other deceptive practices to evade US tariffs is likely to persist as long as tariffs remain in place.
a. Chinese exporters are using sophisticated methods such as shipping goods through third countries, namely Malaysia, Vietnam, Thailand, and South Korea. Their aim is to obscure their origin and to avoid steep US tariffs of up to 145%. [source]
b. These practices, commonly referred to as “place-of-origin washing” or simply “origin washing,” involve rerouting, repackaging, relabelling, and the production of falsified certificates of origin. Moreover, by using “Free On Board” (FOB) terms, exporters can shield themselves from legal liability. [source][source]
c. Indeed, according to Thailand’s Department of Foreign Trade, 42 types of products were recently found to be misusing Thai certificates of origin to bypass US and European tariffs. This practice was particularly utilised on aluminium foil and electric bicycles. [source]
c. Social media platforms, including Xiaohongshu (RedNote) and Douyin (Chinese TikTok), are reportedly saturated with advertisements offering “place-of-origin washing” or “one-stop re-export and freight forwarding services.” [source][source]
d. Furthermore, freight forwarders and customs brokers are emerging as key facilitators, managing documentation, clearance, and certificates of origin, with some assisting in changing or reloading containers to disguise origins. [source][source]
e. Another circumvention method involves mixing high-cost items with cheaper goods to underreport overall shipment values, often facilitated by intermediaries offering “grey area” workarounds. [source]
KJ-2. Asian nations are stepping up efforts to curb origin washing in response to rising US tariff pressure and trade concerns. Challenges, however, persist in keeping pace with the scale of the activity and the overall effectiveness is unclear.
a. Following US reciprocal tariff measures, Asian countries are intensifying efforts to crack down on “source washing,” a concern tied to tariff evasion. [source]
b. Authorities in Malaysia, Vietnam, and Thailand are looking into the alleged practice and implementing measures to tighten origin checks. [source]
c. Vietnam has also issued directives and new rules to strictly control certificates of origin and supplier materials to prevent fraud, intensifying inspections of raw material origins. Equally, Thailand has increased product origin verification for US-bound exports. [source][source]
d. Indeed, South Korea’s customs agency reported uncovering nearly $21 million or over $20 million worth of falsely labeled exports bound for the US in Q1 2025 alone. [source]
e. Despite increased scrutiny, authorities in the US and Europe are struggling to keep pace with the number of businesses openly promoting origin washing services through social media advertisements, according to a recent Radio Free Asia (RFA) report. [source] [source]
KJ-3. Building on its approach to countering sanctions evasion, the US is likely to broaden its strategies to prevent origin washing. This signals a complex and challenging future for Chinese exporters and implicated third countries.
a. Experts assess that trade relations in this new world trade order will be increasingly non-uniform, with rules of origin gaining prominence. [source]
b. The US administration views origin washing as a method used by China to reroute goods through countries like Vietnam to evade tariffs. In response, the US will likely implement a global tracking system to monitor supply chains. [source]
c. It is possible that US reciprocal trade agreements may include “snap back” provisions. These would likely allow higher tariffs to reapply if origin washing is detected. [source]
d. This tracking system aims to impose joint punishment on trans-shipment trade, potentially leading to the direct suspension of exports to the US for all related companies in a country if one is found engaging in the practice. [source]
e. In addition, experts characterise the US tariff policy as a “comprehensive encircling blockade.” The policy tightens scrutiny across the entire supply chain, encompassing raw materials, manufacturing, shipping, small packages, and Chinese vessels. [source]
Statement on Analysis
This analysis draws upon numerous independent sources confirming origin washing tactics, methods, government responses, and countries involved. Therefore, our confidence in this assessment is moderately high. Limitations remain, however. The exact scale and value of origin washing are difficult to quantify comprehensively based solely on these sources, although reported seizures and social media activity indicate it is significant.
Moreover, knowledge gaps exist regarding the precise success rates of the crackdown efforts, the full range of industries affected, and the specific legal frameworks being applied by third countries. Additionally, future events may alter our assessment. This could include changes in US trade policy, shifts in trade relationships, implementation of global tracking systems, or a restructuring of supply chains by Chinese companies away from transit countries.