South Korea’s customs agency has discovered an increasing amount of foreign products disguised as Korean exports amid the current tariffs crisis. To combat this, South Korea has created a task force to prevent future attempts of illegally exported and disguised goods, hoping to protect domestic companies. 

After President Donald Trump issued a series of tariffs on international trade, affecting products by taxing different countries’ exports. Ranging from a baseline of 10% to rates of over 100% directed at certain countries, products have subsequently risen in price, affecting both the international and domestic markets. 

South Korean officials believe the disguise of products has been sparked by the tariffs, with a majority of the disguised products being from China, which the Trump administration is currently enforcing a 145% tax rate on, after a series of retaliatory tariffs. 

“There was a rise in disguised export attempts during Trump’s first presidency, and we expect there to be a similar trend [during his second term],” Korea Customs Service’s investigation planning director Lee Kwang-woo said to Reuters.

According to Reuters, South Korean officials discovered $20.81 million worth of violations from the products, with 97% of the exports headed to the U.S., with cathode materials used for batteries imported under a false country, predating the tariffs..

While the Trump administration seeks to prioritize trade with ally countries such as South Korea, South Korean officials worry ​“foreign companies, such as those in neighbouring China, [might] use South Korea, which is a major U.S. ally and has a free-trade pact, as a bypass to avoid tariffs and regulations,” according to Reuters. 

Internationally, the market remains uncertain with tariffs dramatically affecting and creating a difference in international exports and imports.