Shell game: How China-linked front companies dodge U.S. tariffs

Strategy complicates task of collecting Trump administration's promised trillions

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Trade experts and Chinese logistics providers say it is easy to set up shell companies in the U.S., which could be used to evade President Donald Trump's steep tariffs. (Nikkei montage)

PAK YIU

NEW YORK -- U.S. President Donald Trump's administration has claimed that his tariff policy will usher in a "golden age" for American manufacturing and bring in trillions of dollars in revenue. But trade experts warn that collection efforts could be complicated by China-linked companies' use of shell importers to evade customs duties.

They warn that these entities are easy to set up and that the strategy may proliferate now that Trump has slapped up to 145% in new tariffs on Chinese goods. Including past levies, the maximum tariff rate on certain Chinese imports now runs as high as 245%.

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