China has been accused of mislabeling vegetables exported to the European Union by routing them through Vietnam to circumvent tariffs, according to reports from multiple news outlets as of May 2026. The European Commission is investigating claims that Chinese producers are relabeling products such as garlic and mushrooms as originating from Vietnam to benefit from lower import duties under the EU-Vietnam Free Trade Agreement.
The allegations, first reported by French agricultural media and later picked up by international agencies, suggest that the practice has been ongoing for several months. Vietnamese authorities have denied any involvement, stating they are cooperating with EU investigators to verify the origin of shipments. No official confirmation of the fraud has been released by the EU as of May 8, 2026.
If proven, this could lead to retroactive tariffs and sanctions against Chinese exporters, as well as stricter customs checks on Vietnamese imports. The case highlights ongoing tensions in global trade, particularly regarding agricultural products and tariff evasion.