China carrying out customs fraud, trade expert says: 'No doubt'

Published On Feb 13, 2025, 9:16 AM

Trade expert Daniel Pickard claims that there is widespread customs fraud occurring in China, involving practices such as mislabeling goods to avoid tariffs. This comes amidst the implementation of new tariffs by the Biden administration aimed at curbing trade fraud and illegal drug trafficking linked to Chinese imports. Pickard notes that the ongoing economic pressures in China may drive companies to absorb tariff costs to maintain their market share in the U.S. The article discusses how the revived enforcement strategy under President Trump could significantly impact China's ability to continue such practices.

Stock Forecasts

SPY

Negative

The heightened tariffs and enforcement measures against Chinese imports may negatively impact companies reliant on these goods, particularly importers and U.S. retailers. Investors in companies heavily exposed to Chinese supply chains should reassess their positions as increased costs and potential legal ramifications could arise.

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