In brief
The United States has released a report alleging that more than forty countries—including Canada, India, Mexico, Japan and South Korea—have helped China sidestep the tariffs imposed by the Trump administration. The practice of transshipment is said to have moved tens of billions of dollars of goods through lower‑tariff jurisdictions, hurting American jobs and revenue. China’s embassy rebuts the claim, calling the accusations “unfounded,” while the U.S. points to the scheme as a sophisticated form of fraud. The warning comes ahead of President Trump’s meeting with Xi Jinping and could shape bargaining positions amid ongoing trade tensions.
The United States has revealed that more than forty countries have been assisting China in sidestepping the tariff hikes imposed by the Trump administration. The White House report, released on Thursday, claims that Canada, India, Mexico, Japan, and South Korea helped move tens of billions of dollars worth of Chinese goods through jurisdictions with lower U.S. import duties.
White House trade adviser Peter Navarro said the shrewd routing had “cost American jobs and billions in revenue.” The practice, known as transshipment, involves re‑packaging or transiting cargo through a third country to shorten the effective origin. The U.S. says the operation is a sophisticated form of fraud that attracts the attention of modern customs enforcement.
In response, the Chinese embassy in Washington said trade wars have no winners and that China opposes the tariff regime and the use of state power to target Chinese companies. The embassy cautioned that any unilateral actions that hamper the interests of third parties were unacceptable.
The report arrives just weeks before President Trump is scheduled to meet with Chinese leader Xi Jinping in Washington, and follows rounds of sanctions that kept rising. Experts say the revelation could reinforce Washington’s bargaining position in bilateral talks and highlight the risks of deeper supply‑chain integration for other trading partners.
According to the White House, the estimated value of goods moved through lower‑tariff routes is between £22bn ($30bn) and $300bn, with firms reportedly using artificial‑intelligence tools to detect and trace transshipments. The U.S. intelligence agency says the scheme stretches from the Americas to Asia and threatens to cheat joint trade agreements. The question now is how much of this truly influences policy and how the global community will respond.
