2 weeks ago
US Report Accuses India of Transshipping Chinese Goods
Some grown-ups in America wrote a report that says India and other countries are secretly sending things made in China to America, pretending the things were made in their own country.
This is called transshipping, and it helps China avoid paying extra money, called tariffs, that America charges on Chinese goods.
The report is called 'The Great Transshipment Scam' and it lists 40 countries, with India in the top group of 'worst offenders'.
The report says that in 2025, about 67 billion dollars of goods were sent this way through Mexico, India, and Vietnam.
But the report does not show clear proof that India did anything wrong.
It only talks about pumps and compressors made in parts of India.
Smart people who study trade say India actually makes many of these things itself, adding value to them.
Some people think the report is a way for America to blame other countries because its plan to stop Chinese goods is not working.
India's leaders say they should answer the report with facts and not get upset too quickly.
The Trump administration's report 'The Great Transshipment Scam' places India in Tier-1 among 40 countries accused of re-routing Chinese goods to the US to evade tariffs.
The US Commerce Department estimates $67 billion in US-bound goods were transshipped from China through Mexico, India, and Vietnam in 2025, costing an estimated $28 billion in lost tariff revenue.
The report cites no direct evidence of India violating rules of origin, pointing only to pumps and compressors exported from the Pune-Gujarat-Chennai region.
Analysts say India's pump export volumes exceed imports from China, suggesting value addition, while compressor imports appear to be absorbed domestically.
The article argues the report may signal the failure of Trump's tariff offensive and could precede new tariffs under Section 301 and Section 232, advising India to respond factually.
- Who
- The Trump administration (via the US Commerce Department) and India
- What
- A US report, 'The Great Transshipment Scam', accuses India and 39 other countries of re-routing Chinese goods to the US to evade tariffs
- Where
- United States and India; transshipment hubs include Mexico, India and Vietnam; Indian exports cited from the Pune-Gujarat-Chennai region
- When
- Report released last week; data covers 2025 (article published August 17, 2026)
- Why
- To avoid US punitive tariffs on Chinese goods; the US alleges large-scale violation of rules of origin
India and trade analysts
US administration
Transshipment allegations
India and trade analysts
India has not violated rules of origin; pump exports exceed imports from China, showing value addition, and the US should disclose shipment details.
US administration
India is a Tier-1 offender that re-routes Chinese goods to the US, causing $28 billion in lost tariff revenue.
Tariff policy effectiveness
India and trade analysts
The report signals the failure of Trump's tariff offensive to curb imports or boost US manufacturing.
US administration
Tariffs have cut direct Chinese imports, and transshipment must be stopped to protect US industry.
Key facts
- Report name
- The Great Transshipment Scam
- Countries accused
- 40, with India in Tier-1 of worst offenders
- Transshipped goods value (2025)
- $67 billion via Mexico, India, Vietnam
- Estimated lost tariff revenue
- $28 billion
- US imports from China fell (2025)
- Roughly $109 billion
- US imports from other countries rose (2025)
- Roughly $156 billion
- China's share of US imports
- Fell from 20% (2018) to 10% (2024)
- US tariffs on India
- 50% levels between August 2025 and February 2026
Quotes
U.S. Commerce Department
U.S. federal agency responsible for trade data
“$67 billion in US-bound goods were transshipped from China through the top hubs — Mexico, India, and Vietnam — in 2025, producing an estimated $28 billion in lost tariff revenue”
thehindubusinessline.com
Sources
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