The White House released a report on Thursday alleging that more than 40 countries have assisted China in sidestepping US tariffs. By routing exports through nations subject to lower American import duties, China has reportedly managed to evade tens of billions of dollars in levies intended for goods entering the United States.
The document identifies several key trading partners, including Canada, India, Mexico, Japan, and South Korea, as participants in this practice. White House trade adviser Peter Navarro stated that these actions have resulted in the loss of “American jobs and billions in revenue.”
The practice, known as transshipping, involves moving cargo through intermediate countries to reach a final destination. The White House report claims China has exploited this method by repackaging goods to obscure their true origin, a process officials characterized as “fraud cloaked in paperwork.”
According to government and private sector estimates cited by the White House, between $30bn (£22.2bn) and roughly $300bn in goods have been moved from countries with higher tariffs through those with lower rates. This scale of activity highlights what the administration calls a “Shadow Transshipment Network.”
In April 2025, President Trump unveiled sweeping levies on dozens of US trading partners based on a long-held belief that tariffs will help boost American jobs and the economy. While some of these sanctions were subsequently struck down by the US Supreme Court, the administration has repeatedly introduced new tariffs using alternative legal levers to sustain its signature trade policy.
A spokesperson for the Chinese embassy in Washington responded to the allegations by stating that “trade wars have no winners.” The embassy expressed strong opposition to the US tariff measures and the use of state power to target Chinese companies, adding that “any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties.”
The US has reportedly deployed artificial intelligence tools to detect these transshipment efforts. The White House report describes the current situation as a “Great Transshipment Scam,” noting that the speed, scale, and sophistication of these evasion tactics have reached unprecedented levels.
Despite a temporary pause in most tariffs following negotiations in May 2025, Washington and Beijing have continued to exchange various sanctions. These include recent restrictions on humanoid robots shipped to the US and tighter Chinese curbs on drone exports.
The report is expected to be a significant point of contention as President Trump and Chinese leader Xi Jinping prepare to meet in Washington this September. Meanwhile, the administration recently made headlines on August 5 by paying back $100bn in so-called “Liberation Day” tariffs to affected businesses.
The has reached out to the embassies of Canada, India, Mexico, Japan, and South Korea for comment regarding their inclusion in the report. As the diplomatic situation evolves, the administration continues to emphasize the importance of enforcing tariff compliance to protect domestic industries.
Comments