Here’s how the trade war could lead to a boom in counterfeit goods

by MR Magazine Staff

As the trade war between the U.S. and China has continued to heat up, Chinese nationals potentially could turn to a surprising way around tariffs: increasing the number of counterfeit goods, according to the Federal Bureau of Investigation. Trade groups have warned Congress that tariffs could increase costs and drain resources available to fight illicit counterfeits. They also caution that consumers may knowingly or unknowingly seek counterfeit goods as legitimate goods become more expensive. Six trade groups sent a letter to the House Ways and Means Committee with the warning in June, according to World Trademark Review. Counterfeit goods cost the U.S. economy an estimated $600 billion a year, or 3 percent of the U.S. gross domestic product, according to Steve Shapiro, the unit chief for the FBI’s intellectual property rights unit. Read more at CNBC.