US alleges China routed goods through allies to dodge Trump tariffs
The White House posted a report on Thursday alleging that more than 40 countries aided China in evading U.S. tariffs by transshipping exports through nations with lower import duties.
Among the listed partners are Canada, India, Mexico, Japan and South Korea, which the U.S. claims helped China sidestep tens of billions of dollars worth of duties. Trade adviser Peter Navarro described the practice as a “fraud cloaked in paperwork” that costs American jobs and revenue.
A spokesperson for the Chinese embassy in Washington said that “trade wars have no winners” and opposed the tariff measures. The U.S. noted that between 30 bn and 300 bn dollars of goods have passed through the network, a figure based on government and private estimates.
The transshipment scheme, which involves rerouting cargo through a third country and re‑packaging it to conceal its origin, has been called by Washington a new “Great Transshipment Scam.” Artificial intelligence tools are already being deployed to detect such practices.
The findings could become an added leverage ahead of President Trump’s upcoming meeting with President Xi in Washington. Economic experts warn that countries heavily integrated into Chinese supply chains may face higher costs and new trade‑risk profiles.
This report is part of a broader pattern of sanctions and retaliatory tariffs between the U.S. and China, following the Supreme Court’s strike‑down of Trump’s earlier levies and the continued implementation of new duties through alternative legal channels.
