U.S. retailers are not the only ones struggling with President Trump’s new tariffs on Chinese goods. The tariffs have also created problems for Chinese suppliers who are trying to stay competitive in the global market.
Some Chinese suppliers have been offering simple solutions to American companies, but they are illegal. These suppliers are telling U.S. Amazon sellers that they should lie about the value of their imported merchandise on customs forms to lower their tariff payments. This is essentially customs fraud.
Several Chinese suppliers proposed this plan to a mid-sized household goods brand with a large presence on Amazon in emails and WeChat messages. They suggested that the brand revise its declared value on commercial invoices to reduce duty costs or use Delivery Duty Paid (DDP) shipping, where they would handle customs clearance instead of the U.S. brand.
However, this plan is not a viable solution for several reasons. First, it’s against the law. Second, it could lead to severe consequences for both the Chinese supplier and the U.S. seller. For example, if discovered, U.S. Amazon sellers could face fines or even imprisonment.
The situation comes as President Trump recently imposed tariffs on countries across the world, including China, with a whopping 145% tariff on most U.S. imports from the country. As a result, suppliers, retailers, and brands with supply chains linked to China are frantically searching for solutions.
Many U.S.-based Amazon sellers have long suspected that their Chinese rivals are undervaluing their imports to reduce costs. The issue recently came to light when a China-based consultant published a post stating that the declared value of goods in a typical container from China to the U.S. usually ranges from $5,000 to $10,000.
U.S. Amazon sellers claim that this is significantly lower than they expected, especially for the home and garden category. They fear that Chinese suppliers who intentionally mislead customs about the value of their imports will gain a competitive advantage in the market due to the tariffs.
In response to these concerns, Fortune reached out to U.S.-based household goods entrepreneurs with thoughts on this topic or tips to share. If you have any information or insights related to this issue, please contact Jason Del Rey at [protonmail email address] or through messaging apps Signal and WhatsApp at 917-655-4267.
Source: https://fortune.com/2025/04/12/china-suppliers-amazon-sellers-tariff-workaround-proposal-lowers-declared-value-goods