Import Tariffs and the Flow of Counterfeit Goods into the United States

The world of counterfeit goods is diverse and has grown rapidly throughout the years. The boom of e-commerce has resulted in a devastating increase in the shipment of small packages into the United States, making it easier for every day consumers to be fooled by counterfeiting masterminds. Counterfeit goods are not limited to fake watches and designer purses offered on the streets of Los Angeles or New York City anymore, instead the market has expanded to include many goods like consumer electronics, footwear, apparel, cosmetics, and even medicines and personal care items. Advances in technology at border control points, advertising campaigns that promote the negative effects of counterfeiting to educate consumers, and industry leaders having more control over their suppliers are some of the many effective strategies in the fight against counterfeiting, but what about the effects of international trade and the role of tariffs. This paper examines the relationship between import tariffs and the flow of industrial (nonagricultural) counterfeit goods into the United States