The White House released a report on Thursday claiming that more than 40 countries, including Canada, India, Mexico, Japan and South Korea, have assisted China in evading U.S. tariffs by transshipping goods through nations that apply lower duties. The report suggests that such practices have saved China tens of billions of dollars and, according to White House trade adviser Peter Navarro, have harmed American jobs and revenue.
In response to BBC queries, the Chinese embassy in Washington asserted that trade wars have no winners and opposed U.S. tariff measures, adding that any unilateral actions concerning transshipped goods must not target or harm the interests of third parties.
White House officials followed the claims with a call for comment from the U.S. embassies in the countries listed, as the U.S. and China continue to exchange sanctions, including restrictions on robotics and drone exports, even after a temporary pause in tariffs.
The report cites estimates between 30 billion US dollars (22.2 billion pounds) and roughly 300 billion dollars of goods moved through lower‑rate nations, describing the process as a sophisticated “shadow transshipment network” that the U.S. claims is “fraud cloaked in paperwork.”
To counter this, the U.S. has deployed artificial intelligence tools to detect transshipment activities, a strategy expected to weigh heavily on diplomatic negotiations, as President Trump prepares to meet President Xi in Washington in September.
While some U.S. tariffs have been struck down by the Supreme Court, Trump’s administration continues to employ alternative legal levers to impose new tariffs on a wide range of goods and industries. The ongoing dispute underscores the complexity of global supply chains and the diplomatic challenges posed by revenue‑dropping measures in international trade.
US Accuses Over 40 Nations of Siding China in Tariff Evasion Scheme
US Accuses Over 40 Nations of Siding China in Tariff Evasion Scheme
White House says dozens of countries helped China dodge U.S. tariffs by transshipping, sparking diplomatic friction ahead of Trump’s summit with Xi.
The White House released a report on Thursday alleging that more than 40 countries have facilitated China’s evasion of U.S. tariffs by routing goods through nations with lower import duties. The list includes Canada, India, Mexico, Japan and South Korea, and the U.S. claims the manoeuvres cost American jobs and billions in revenue. China’s embassy spokesperson dismissed the charges, arguing that trade wars bring no winners and insisting that depots used for transshipment must not harm third‑party interests. The revelations arrive weeks before President Trump will meet Chinese President Xi in Washington, amid an ongoing cycle of sanctions and counter‑sanctions between the two powers.
