US flags dozens of trade partners as risks for aiding tariff evasion
The report says China-linked exporters routed goods through lower-tariff economies to avoid U.S. duties, with officials planning AI screening and retroactive penalties.
- On Thursday, the White House Office of Trade and Manufacturing Policy released a report titled "The Great Transshipment Scam," accusing more than 40 countries of helping Chinese exporters evade U.S. tariffs through relabeling and false country-of-origin claims.
- Estimates suggest tariff-evading transshipments have deprived the U.S. of between $40 billion and $303 billion in customs revenue annually, as Chinese exporters route goods through third countries to bypass levies imposed by President Donald Trump.
- The report categorizes participating nations into three tiers: Tier 1 includes "diversified scale leaders" like India, Canada, and the European Union; Tier 2 covers those with "significant economic integration" with China; Tier 3 consists of "small, opportunistic Chinese targets."
- Implementing enforcement measures, the administration will deploy an AI-enabled "Detective Border" system allowing Customs and Border Protection to scan shipment data and retroactively claim tariffs on companies' imports over the previous year.
- White House trade advisor Peter Navarro warned that countries facilitating transshipment face deterrence as tariffs increase, stating preferential U.S. market access is not "a license to launder somebody else's exports." His warning targets India and Vietnam specifically.
54 Articles
54 Articles
US accuses allies of China tariff ‘scam’
The White House claims more than 40 countries have served as hubs for rerouting Chinese goods The White House has accused more than 40 nations, including some of its closest partners, of helping Chinese goods evade US tariffs by exploiting differences in levies imposed on third countries. A new 25-page report titled ‘The Great Transshipment...
US Names India, 40 Nations In China Tariff Evasion Crackdown; Plans AI Checks
The US has accused India and more than 40 countries of facilitating Chinese tariff evasion through transshipment and announced plans to use an AI-enabled system to identify suspicious goods entering the country
U.S. names India among over 40 nations accused of helping China evade tariffs via ‘shadow network’
‘The Great Transshipment Scam’ report said the transshipments became more prevalent after 2018; Peter Navarro announced that U.S. will use an AI-enabled “Detective Border”
'Great Transshipment Scam': US Names India Among 40 Hubs Of China's Tariff Evasion
"China began using these third countries for minor processing, relabeling, repackaging, reinvoicing, or routing changes that created the appearance of a new national origin," Navarro said.
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