Chicago Tuesday, May 20, 2025
Tariffs Are High, but Enforcement Is a Challenge
President Trump introduced a series of sweeping tariffs on imports to the U.S., many of which were later paused or reversed. Despite this, overall tariff rates remain higher than before his presidency, part of an effort to strengthen domestic manufacturing and boost federal revenue.
However, enforcing these tariffs is proving to be difficult. Federal agencies tasked with monitoring imports are often overwhelmed and understaffed. Experts say exporters have become more skilled at avoiding duties. Even after a recent agreement between the U.S. and China, tariffs on Chinese goods remain around 30%, significantly higher than those on imports from other countries, even with Trump’s 90-day freeze in effect.
According to trade compliance lawyer Matt Lapin, the high tariffs give businesses more reason to bypass the law. “The temptation for bad actors to behave worse, or for previously compliant businesses to break the rules, is growing,” he explained.
Smuggling and Limited Resources Complicate Collection
Higher tariffs, particularly on Chinese products, have led to a rise in smuggling, according to trade experts. One common method is transshipping, where goods are routed through a third country to disguise their origin.
David Rashid, who owns an auto parts company in Illinois, initially supported Trump’s 25% tariffs on China. But he soon realized that competitors were still selling at the same price. He later discovered they were avoiding tariffs by sending their goods through countries like Vietnam and Thailand.
Matthew Galeotti of the Department of Justice acknowledged that customs fraud and tariff evasion threaten efforts to protect U.S. consumers and grow American jobs.
U.S. Customs and Border Protection (CBP), the main agency responsible for screening imports, now has an expanded role. Alongside enforcing retaliatory tariffs, it must now collect duties on over a billion low-value packages, mostly from Chinese e-commerce sites, after the Trump administration closed the “de minimis” loophole.
Although CBP claims it’s ready to enforce the new rules with the harshest penalties allowed by law, industry experts disagree. Logistics specialist Ram Ben Tzion argues the agency lacks the manpower, expertise, and technology to effectively handle the massive volume of incoming shipments.
