The White House released a report indicating that more than 40 nations have facilitated China’s efforts to avoid US tariffs by routing exports through countries with lower American import duties. The countries identified include Canada, India, Mexico, Japan, and South Korea. According to government and private sector estimates referenced in the report, between $30 billion and approximately $300 billion in goods have been redirected from higher-tariff jurisdictions to those with lower rates through this process.
Transshipment involves transferring cargo through another country while in transit to its final destination. The White House alleged that China has exploited this practice by moving goods through third countries and repackaging items to conceal their true origin and obtain lower tariffs. Officials described this strategy as “fraud cloaked in paperwork” and characterized the overall scheme as a “Great Transshipment Scam.” The US administration stated it has deployed artificial intelligence tools to identify and combat these transshipment efforts.
White House trade adviser Peter Navarro asserted that the tariff evasion has cost American jobs and billions in revenue. A spokesperson for the Chinese embassy responded by stating that trade wars produce no winners and opposed the US tariff measures and use of state power to target Chinese companies. The spokesperson further argued that unilateral actions regarding transshipped goods must not target or harm the interests of third parties.
The report emerges amid ongoing tensions between Washington and Beijing, including recent exchanges of sanctions on humanoid robots and drone exports. The timing is significant as it precedes a planned meeting between President Trump and Chinese leader Xi Jinping in September. Analysts suggest the report could strengthen the US position in trade negotiations by demonstrating that China has maintained indirect market access and that broader settlements must address both direct exports and third-country routing mechanisms.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI