US EditionChina’s $112 Billion Cargo Gap Shows Record US Tariff Evasion: Bloomberg
The $112 billion gap reflects widespread tariff evasion via shell companies, misclassification, and Delivered Duty Paid schemes, undermining U.S. trade enforcement efforts, officials say.
- Trade data released Thursday showed a record $112 billion gap between China’s export reports and U.S. Customs records last year, suggesting up to a quarter of shipments evaded tariffs.
- Steep tariffs and logistics tactics have spawned an underground economy where the Delivered Duty Paid mechanism and phantom importers let Chinese suppliers and aggressive freight forwarders evade duties.
- Industry sources report schemes promising `all-in` shipping from China to the U.S. for as little as $0.70 per kilogram, with claims of 40%–50% savings, harming firms like Michael Kersey's.
- CBP has stepped up enforcement of Importer of Record accounts and contracted AI firms, but officials warned in a Jan. 13 webinar that investigations may take years and DHS resource shifts hamper probes.
- Legislative proposals, including a bipartisan congressional proposal to increase U.S. asset requirements and a bill introduced earlier this month to scrap the `first sale` rule, remain stalled despite Federal Reserve research showing most trade-data gaps stem from tariff evasion.
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The Detroit News
The spokesman-ReviewChina's $112 billion cargo gap shows record U.S. tariff evasion
The messages arrive via WhatsApp and email, promising a deal that seems too good to be legal: a way to move goods from China to the U.S. while avoiding President Donald Trump’s tariffs. For Michael Kersey, president of the American Lawn Mower Company, these solicitations represent an existential threat. His century-old firm, famous for its push-reel mowers and gardening shovels, plays by the rules. His competitors, he suspects, are somehow bypass
$112 Billion in Chinese Goods Slipped Past Trump's Tariffs Last Year
New trade figures show a record $112 billion mismatch between China’s reported exports to the US and the volume US Customs and Border Protection logged as actually clearing American ports last year — a discrepancy that points to roughly a quarter of Chinese shipments evading applicable tariffs entirely. The gap is not new, but its scale and direction are. Data from China’s General Administration of Customs and the US Census Bureau show that befo…
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