The White House has released a report detailing how more than 40 nations, including Canada, India, Mexico, Japan, and South Korea, have allegedly assisted China in circumventing US tariffs through transshipment practices.
The White House released a report on Thursday alleging that more than 40 countries have facilitated China's efforts to bypass American tariff restrictions by routing exports through nations with lower import duties. The countries identified include Canada, India, Mexico, Japan, and South Korea. According to the White House, this arrangement has enabled China to evade tens of billions of dollars in tariffs.
The practice, known as transshipment, involves transferring cargo through intermediate countries en route to a final destination. The White House characterised the scheme as "fraud cloaked in paperwork," claiming that China has repackaged goods and concealed their origin to obtain reduced tariff rates. Government and private sector estimates cited by the White House suggest between $30 billion and roughly $300 billion in goods have been redirected through countries with lower tariff rates. White House trade adviser Peter Navarro stated the practice has cost "American jobs and billions in revenue."
In response, a spokesperson for the Chinese embassy in Washington told the BBC that "trade wars have no winners" and opposed unilateral American actions targeting Chinese companies. The spokesperson added that any measures concerning transshipped goods should not harm the interests of third parties. The US has reportedly deployed artificial intelligence tools to identify transshipment efforts.
The report emerges amid ongoing trade tensions between Washington and Beijing, with the announcement coming weeks before President Donald Trump is scheduled to meet Chinese leader Xi Jinping in Washington. Despite a tariff pause following May 2025 talks, the two countries have continued exchanging sanctions on various goods.
