According to Ryan Peterson, the CEO of Flexport, there was a large increase in the number of foreign companies registered as the "importer of record" in the US as a result of the tariffs. On the Odd Lots podcast, he stated this was due to fraud: companies set up subsidiary corps in the US, which then imported goods from their parent/sibling/related companies at much lower prices than market value. Because tariffs are a percentage of the value, this made them lower. Then the subsidiary could turn around and sell it in the US at market rates.

Yes, but when the product costs went up to cover their fees who paid that? We did. So the "Importer of Record" will (maybe) get a refund from the government, while also getting the higher prices paid to them from the distributors/consumers.

read from where? Because over 92% of tariff costs were born by domestic importers. Thats american companies who then offload that tax through higher purchasing costs.

https://libertystreeteconomics.newyorkfed.org/2026/02/who-is...