We need to talk about tariffs and the dangers of Chinese marketplaces

Will President Donald Trump’s tariffs make consumers buy directly from Chinese marketplaces and potentially sacrifice their privacy for cheap tech?

US President Donald Trump is imposing insane tariffs (145%) on Chinese-made goods. This supposedly will force Americans to buy more products made in the US.

But, much like we saw with TikTok when US users became TikTok refugees fleeing to RedNote to get their fix, Americans may become more reliant on Chinese marketplaces like Temu, Shein, Gonest, Taobao, Alibaba, and AliExpress.

This naturally comes with cybersecurity risks, as data protection authorities like noyb have previously raised concerns and filed complaints against these companies for their “unlawful data transfers to China.”

So, what risks are you taking when entering personal information such as your name, address, credit card details, and other data?

Cybernews asked experts to break down what may happen when buying tech and other goods directly from Chinese marketplaces.

Data privacy

Cybersecurity expert Akash Mahajan, CEO of Kloudle, a cloud security scanner, told Cybernews just how much data is needed for sellers to fulfill an order.

“Marketplaces like AliExpress often require you to enter details like your name, address, phone number, and credit card information.”

Sellers may also gain access to more information than is needed to deliver a basic order. How that data is handled after the transaction might not be transparent, Mahajan told Cybernews.

Different countries and even private marketplaces will have different regulations when it comes to how they handle your data. So the practice might not be the same across the board.

“That data can be used for profiling, shared with third parties, or in worst-case scenarios, exploited in scams or phishing attempts down the line,” Mahajan said.

Data breaches

Cybernews recently reported a breach in the Alibaba-owned marketplace Taobao, where millions of users were likely exposed after researchers discovered an unprotected Elasticsearch cluster with publicly accessible user data.

Chinese marketplace Temu was also rumored to be the victim of a data breach after an unknown threat actor on the illicit marketplace BreachForums claimed to have 87 million lines of Temu users’ personal data.

However, Temu assured users that their data is safe.

Is your data secure?

The main problem with Chinese marketplaces is that we’re unaware of how much of our data is being transferred to the Chinese Communist Party (CCP).

It’s been reported that the CCP has taken “golden shares” in the subsidiaries of massive companies like Alibaba and Tencent Holdings.

Golden shares are usually a 1% stake in such companies. This usually means that a government official will have a seat on the firm's board and will have the right to make decisions affecting the business.

Therefore, this may suggest that the government has some power within massive companies that operate in the US, most famously Bytedance, owner of TikTok.

However, this doesn’t necessarily mean much, as American-grown businesses like Mark Zuckerberg’s Meta, specifically Facebook, were so desperate to enter the Chinese market that he was willing to hand over US users’ data, says Sarah Wynn-Williams author of Careless People, a memoir about her time at Facebook.

Scams

With talk of tariffs, Americans might think it wise to buy directly from Chinese marketplaces. However, fraudsters are always on the look out for an opportunity to scam unsuspecting customers.

Cybernews reported a Temu “free money” scam, which was a promotion offering up to £100 ($126) in cash and store credit for new sign-ups in the UK.

Scammers themselves are likely to prey on marketplaces where third-party sellers advertise goods.

These fraudsters may try their best to impersonate legitimate third-party sellers on the marketplace, and those who don’t look at the reviews may be in for a nasty surprise.

Fake tech products

It’s quite obvious that you’ll find counterfeit tech products on marketplaces that claim to sell top-dollar equipment for next to nothing. Attorney Ben Michael from Michael and Associates agrees.

“You do run the risk of potentially buying an illegal counterfeit product when buying tech from these marketplaces. These marketplaces are known for selling a pretty high percentage of counterfeit products, unfortunately, so while many products sold are legit, there is always that possibility, Micheal told Cybernews.

Users could also potentially buy products that are of poor quality, insecure, or even infected with malware.

Another expert, Jeanel Alvarado, retail expert, founder, and CEO of RetailBoss, corroborated Michael’s statement, saying that products, particularly from AliExpress, may not be approved by major US institutions.

Furthermore, Mahajan told Cybernews that certain lower-priced products “can be poorly made, lack proper safety testing, or even contain hidden malware.”

“Stick to accessories or lower-risk items, and if it connects to your home network or your computer, think twice,” Mahajan told Cybernews.

Think twice before you buy

Cybersecurity expert Mahajan implores users to think twice before they use their credit cards and give away all their personal information.

While using these platforms isn’t immediately unsafe, there will always be people looking to exploit unsuspecting users, especially in times of crisis – such as Trump’s tariffs.

“I always encourage people to use added layers of protection – use virtual cards or secure payment options like PayPal when available, and avoid saving your card details on the platform,” Mahajan told Cybernews.

“Check seller ratings, read the reviews, and don’t take unnecessary chances with your data or devices.”