Chinese Firms Propose Duty-Paid Deals to Dodge US Tariffs

In a bold move to circumvent the steep tariffs imposed by the United States under President Donald Trump, Chinese exporters are reportedly offering innovative solutions to American buyers. These include misstating the value of goods and covering all import charges to alleviate the financial burden on small US firms.

Delivery Duties Paid: A New Strategy

According to a Financial Times (FT) report, some Chinese suppliers are proposing to ship items under "delivery duties paid" (DDP) methods. This approach not only reduces costs for American businesses but also, in some cases, promises to pay all import taxes, effectively leaving no tariff records for US buyers.

Escalating Trade Tensions

The backdrop to these developments is the escalating trade tensions between Washington and Beijing, which have seen US duties on Chinese imports soar up to 145%. In retaliation, China has imposed tariffs of up to 125% on American products. This tit-for-tat tariff war has prompted Chinese companies to explore alternative routes, including exporting goods to the US via third countries, as previously reported by the FT.