2 weeks ago

US Accuses Over 40 Nations of Helping China Evade Tariffs

US Accuses Over 40 Nations of Helping China Evade Tariffs
US names India among 40 nations in crackdown on Chinese tariff evasion · indianexpress.com

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.

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

Sources

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