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By Bargainplace UK · October 20, 2025 · Curated by George's Blog
U.S. customs revenue hit $215 billion in 2025 - a 125% increase from last year and nearly double the previous 2022 peak.
But thanks to what Flexport CEO Ryan Petersen calls "massive" customs fraud, compliant U.S. retailers are bearing the burden while foreign competitors game the system.
The mechanics are simple: "The U.S. is the only country that allows foreign companies to import goods with no legal entity, no requirement to have an employee locally," Petersen explains. "You can just import stuff and then you just lie on your declarations. These companies just cheat and there's basically no consequence."
While Nike faces $1.5 billion in tariff costs and Apple projects $1.1 billion per quarter, non-resident importers can understate values with impunity. U.S. businesses pay full duties on accurately declared values. Foreign competitors don't.
The solution isn't more tariffs - it's closing the enforcement gap. International trade attorney Charles Benoit says, "People who make customs declarations need to be accountable, and that means RESIDENT."
Without reforming non-resident importer policies, the $120 billion surge will keep flowing from compliant U.S. businesses while foreign competitors circumvent the system entirely.
Read the full analysis: https://lnkd.in/dX-vSezs