Counterfeiters don’t operate in isolation, they thrive when markets are unstable, supply chains disrupted, or prices distorted. In recent years, U.S. tariff hikes have unintentionally created those very conditions. By raising costs for legitimate goods and complicating global sourcing routes, tariffs are pushing some buyers towards cheaper, unverified alternatives. Unfortunately, counterfeiters are quick to exploit this demand. The result? A surge in fake products slipping through trade channels, harming both brands and consumers.
When tariffs rise, legitimate supply chains get costlier and more complicated. That friction creates two problems for brands: inflated costs push some buyers to cheaper (often illicit) sources, and complex sourcing and routing open windows for bad actors to slip fake goods into e-commerce. Analysis of trade behaviour and recent enforcement data shows this is more than hypothetical. The scale of counterfeit movement is large and, in some categories, growing. (Source: U.S. Customs and Border Protection)
U.S. Customs & Border Protection (CBP) says IPR (intellectual-property-rights) seizures have surged in recent years. The total number of goods seized for IPR violations more than doubled from FY2020 to FY2024, signalling rising attempts to move fake goods into the U.S. market. At the same time, nearly 90% of CBP’s IPR seizures in FY2024 originated from China and Hong Kong, highlighting persistent supply-side hotspots.
Tariffs can accelerate this trend. Higher duties create incentives to reroute shipments through low-tariff jurisdictions, misclassify goods, or use sham paperwork, techniques frequently employed by counterfeit networks to hide origin and undercut prices. Reports and expert commentary since 2024 have flagged that tariff shocks are correlated with shifts in where and how knock-offs are made and moved.
We see the consequences in real operations: U.S. agencies are still intercepting large, sophisticated illegal shipments. Recent joint enforcement actions have seized millions of illegal or unauthorised devices and millions of items in high-value categories. This is a reminder that counterfeits are adapting to enforcement and policy changes.
What should brands do to protect themselves from counterfeits? Build a two-layer defence:
- Preventive visibility. Monitor marketplaces, cross-border listings and new seller accounts automatically. Early detection reduces revenue loss and keeps consumers safe.
- Rapid enforcement. Automated takedowns, platform escalation and coordinated notice-and-takedown workflows stop listings before they scale.
- Customs engagement. Work with customs offices using accurate product data and watch-lists so seizures and holds work for you.
- Consumer education. Make authorised channels obvious; consumers who can tell real from fake are less likely to buy illicit goods.
IP Moat combines automated global scanning, marketplace takedown and expert enforcement workflows so brands can close the gaps tariffs and trade frictions open. If tariffs are pushing more knock-offs into circulation, the right mix of detection plus fast removal is the best defence, protecting revenue, reputation and customers.
Want a quick brand health check? Book a free audit with IP Moat and get a snapshot of where your products are vulnerable internationally.
