2 weeks ago
US Accuses Over 40 Nations of Helping China Evade Tariffs
The United States says China has been playing a trick to avoid paying extra money on things it sells to America.
When China sends products to the US, America charges extra fees called tariffs.
The US says China avoids these fees by first sending its products to other countries.
Those countries change labels or boxes so the products look like they were made there, and then send them to America.
The US believes more than 40 countries, including big trade partners like India, Mexico and Canada, are part of this trick.
A US official named Peter Navarro wrote a report about it called 'The Great Transshipment Scam.'
The report says the hidden trade could be worth between 40 billion and 303 billion dollars every year.
To catch it, the US plans to use a computer system called 'Detective Border' that studies shipping records and cargo routes.
The report even gives an example: Chinese pumps sent through India's Pune-Gujarat-Chennai region arrive in America looking Indian-made.
This is meant to make sure American companies and workers are not hurt by goods secretly made in China.
The US accused more than 40 countries, including India, Mexico, Canada, the European Union, Japan and South Korea, of helping China evade US tariffs through a 'shadow trans-shipment network'.
White House trade adviser Peter Navarro released the report 'The Great Transshipment Scam' on Thursday, August 13.
The report estimates the annual value of illegally transshipped goods at approximately USD 40 billion to USD 303 billion, depending on methodology.
The US announced an AI-enabled 'Detective Border' system to help US Customs and Border Protection identify and penalize transshipped goods.
Transshipment reportedly grew after Section 301 tariffs were imposed on China in 2018, and economists note companies have shifted supply chains to countries such as Vietnam.
- Who
- The United States, through White House trade adviser Peter Navarro (Counsellor to the President for Trade and Manufacturing), accused more than 40 countries — including India, Mexico, Canada, the European Union, Japan, South Korea, Taiwan and Vietnam — of helping China evade US tariffs.
- What
- The White House released the report 'The Great Transshipment Scam' and announced an AI-powered 'Detective Border' system to detect and penalize goods transshipped to avoid US tariffs.
- Where
- Washington, DC; transshipment routes cited span US borders with Mexico and Canada and supply chains in countries such as India's Pune-Gujarat-Chennai production belt.
- When
- Thursday, August 13, when the White House report was released in Washington.
- Why
- To stop China from disguising the origin of its exports via third countries and bypassing the Section 301 tariffs imposed since 2018, while protecting US industry.
Key facts
- Report
- "The Great Transshipment Scam"
- Countries accused
- More than 40, including India, Mexico, Canada, EU, Japan, South Korea, Taiwan and Vietnam
- Estimated annual value
- Approximately USD 40 billion to USD 303 billion
- Key US official
- Peter Navarro, Counsellor to the President for Trade and Manufacturing
- AI enforcement tool
- "Detective Border" supporting US Customs and Border Protection (CBP)
- Related tariffs
- Section 301 tariffs on China, imposed since 2018
- India region cited
- Pune-Gujarat-Chennai production belt (pumps and compressors)
- Announcement
- Thursday, August 13, Washington
Quotes
Peter Navarro
Former U.S. trade adviser to President Trump, Peter Navarro
“"China began using these third countries for minor processing, relabeling, repackaging, reinvoicing, or routing changes that created the appearance of a new national origin while leaving the underlying Chinese content largely intact."”
theprint.in
“"For years, the great transshipment scam has let Communist China launder its exports through more than 40 countries."”
theprint.in
firstpost.com









