As global trade wars intensify, particularly between the United States and China, a new and troubling practice has gained traction among exporters: “origin washing.” This deceptive method is being used to evade punitive tariffs, with serious implications for global trade integrity, customs enforcement, and supply chain transparency.

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What Is Origin Washing?

Origin washing refers to the manipulation of a product’s declared country of origin in order to evade import tariffs or trade restrictions. This is typically done by rerouting goods through third countries, repackaging or relabeling them, or forging certificates of origin to make it appear as though the product was manufactured in a lower-tariff nation.

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Background: Tariffs and the Rise of Origin Washing

The tactic emerged as a direct response to the high tariffs imposed by the U.S. during the Trump administration, which remain in place. Tariffs on certain Chinese goods reach as high as 145%, pushing Chinese exporters—especially small and mid-sized firms—to seek ways to remain competitive by avoiding these costs.

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Methods Employed in Origin Washing

Technique	Description
Repackaging & Relabeling	Goods are shipped to another country, relabeled with a new origin, then exported.
Fake Certificates of Origin	Documents are forged to declare a new, tariff-friendly country of origin.
Rerouting Shipments	Products are moved through countries like Vietnam, South Korea, or Malaysia.
Minimal Assembly or Modification	Minor changes made in third countries are used to claim “substantial transformation.”

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The Market for Circumvention Services

The demand for origin washing has spawned a gray-market industry. Chinese social media and trade forums now advertise services openly offering origin-washing solutions. These services often include documentation packages, customs guidance, and shipping rerouting.

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Case in Point: South Korea

In just the first quarter of 2025, South Korean authorities uncovered $21 million worth of falsely labeled exports, marketed as “Made in Korea” but found to be of Chinese origin. This underscores how widespread and organized the practice has become.

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Response from Affected Nations

Country	Response to Origin Washing
Vietnam	Strengthened checks on origin of raw materials and final goods.
Thailand	Implemented tighter customs controls and industry audits.
South Korea	Investigated and penalized firms misusing Korean origin labels.
Malaysia & China	No formal public statements or enforcement actions reported.

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Legal Framework: Substantial Transformation

Under U.S. trade law, for a product’s origin to be legitimately changed, it must undergo “substantial transformation”—a process that adds real economic value and changes the product’s character. However, many exporters manipulate interpretive loopholes, making minor modifications or simply rerouting shipments without meaningful transformation.

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Impact on Global Trade and Industries

1. Trade Tensions and Volatility

Ongoing U.S.-China trade frictions amplify uncertainty in sectors such as:

• Electronics
• Textiles
• Furniture
• Light manufacturing

2. Supply Chain Integrity

Origin washing erodes trust in supply chains and exposes importers to legal and reputational risks.

3. Regulatory Pressure

Importing nations may be compelled to tighten trade compliance laws, resulting in:

• Delays at ports
• Stricter audits
• More frequent penalties for non-compliance

4. Ethical and Compliance Risks for Businesses

Companies relying on third-party manufacturers must now vet suppliers more rigorously to avoid unintentional violations of trade laws.

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Conclusion: A Growing Concern for Global Trade

Origin washing is not merely a byproduct of clever maneuvering—it represents a serious challenge to global trade fairness, legal compliance, and national security. As trade regulations tighten and scrutiny increases, companies must remain vigilant and transparent, while governments must collaborate to plug loopholes and protect the integrity of international commerce.