Episode 19: FedEx tariffs announcement, Belgium’s counterfeits, and Guilty Pleas

In this episode, we cover:

• Fedex announced to analysts that the tariff chaos will hit their finances to a total tune of a billion dollars. $300mm of that is due to costs associated with clearing goods through customs, which has suddenly become infinitely more complex. Despite that, revenue they said will grow 4-6% this year, indicating that a massive fall off in shipping is not anticipated. For context, Fedex’s stock has declined 19% this year, which is a sign that the market really punished them for concerns about tariff impacts.

• A troubling development out of Belgium. Customs officials there say that major fashion brands, including Nike and Adidas, are allowing counterfeit goods into the country to avoid disposal costs. Faced bureaucracy and high costs, too many fakes are waved through, turning Belgium into a hub and leaving local law enforcement to clean up the mess.

• Two Chinese Nationals pled guilty to Fake Apple Device Return Fraud that Conned the Technology Giant Out of More Than $16 million in a case brought by the US Attorney Office of the Central District of California. This was a result of an investigation by Homeland Security and IRS investigators that unearthed that the charged (now convicted) individuals smuggled fake iPhones, iPads, and other devices into the United States, then brought them to Apple stores across Southern California. By claiming the devices were defective, they were able to get Apple employees to repair or replace them with genuine products.

 

Quick news hits:

• We found a tutorial from Steve Chou on how you can change elements in a product to avoid or minimize tariffs fascinating.

• The counterfeit Labubu scourge continues: CBP Seattle seizing fake Labubu dolls valued at over $500K and disguised as light bulbs at Seattle airport and the New York Times reports that Lafufus, Fake Labubu Dolls, Raise Safety Alarms and Spawn Raids. And a useful reader guide how to spot the fakes.

• The story behind the story. The real reason what StockX took such a new and proactive approach to combat counterfeit sneakers, as it was reported that Nike, StockX End Trademark Clash Over NFTs and Fake Shoes

• Walmart’s Marketplace boom: How lax vetting came with identity theft and fakes

• Fake weight-loss drug sales surge in Europe. Reported in Politico and CNBC

• Liberia to Launch Central Identification Registry to Combat Phone Theft and Counterfeits

• Consumers in South Africa are knowingly purchasing counterfeit alcohol, unaware of both the risks and the disappointment of not actually getting the complex product.