The White House released a scathing report Thursday accusing more than 40 countries of helping China evade U.S. tariffs. According to the report, these nations assisted China in routing exports through countries with lower tariff rates, dodging tens of billions of dollars in payments. The practice, known as “transshipping,” is dealing a severe blow to the U.S. economy.
1+Countries named in the report include Canada, India, Mexico, Japan, and South Korea, which helped China evade tens of billions of dollars in tariffs. Peter Navarro, the White House trade advisor, said the scheme has cost “American jobs and billions of dollars in revenue.” A spokesperson for the Chinese embassy in Washington responded that “trade wars have no winners” and that China opposes U.S. tariff policy.
The report describes how China uses third-party countries as transit points, repackages goods, and conceals their true origin to secure lower tariffs—calling it “fraud wrapped in packaging.” The U.S. has even deployed artificial intelligence tools to catch transshipment attempts. The report is expected to add to tensions ahead of President Donald Trump’s meeting with Chinese leader Xi Jinping in September.
1+President Donald Trump has previously imposed sweeping tariffs on dozens of trading partners, believing tariffs will boost American jobs and the economy. Though some of these sanctions were struck down by the Supreme Court, Trump has continued rolling out new tariffs using alternative legal mechanisms as part of his signature policy.