US Launches $30‑$300 Billion Transshipment Probe, Accusing China of Evading Tariffs
The White House has released a report accusing China of routing through dozens of countries in order to sidestep U.S. tariffs.
The U.S. study cites more than 40 nations—Canada, India, Mexico, Japan and South Korea among them—that helped China shift billions of dollars worth of goods, thereby evading the heavy duties that would normally apply if the cargo was imported directly from China.
White House trade adviser Peter Navarro warned that these practices had cost “American jobs and billions in revenue” and suggested that the transshipment network was “a fraud cloaked in paperwork.”
China’s embassy spokesperson called the tariffs “unilateral” and said the measures harmed the interests of third parties, urging that “any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties.”
According to the report, the goods moved through the lower‑duty countries could range from $30 bn to an estimated $300 bn in value. The practice, known as transshipment, involves transferring cargo through another country en route to its final destination.
The allegations come weeks before President Donald Trump is slated to meet President Xi Jinping in Washington. Expert Chang Pao Li from Singapore Management University said the findings could give Washington a stronger bargaining position, pointing out that economies further integrated with Chinese supply chains may now face added costs.
While most tariffs were paused following talks in May 2025, the U.S. and China continue to exchange sanctions, including restrictions on the export of humanoid robots and Chinese curbs on drone shipments.
Next Steps
The White House claims it has employed artificial intelligence tools to track and curb transshipment. The U.S. embassies of Canada, India, Mexico, Japan, South Korea and others are being queried for comment on the accusations.
