In brief
In a stark warning to US trade policy, the White House says over 40 countries—including Canada, India, Japan and South Korea—have helped China route goods through lower‑dutied nations to evade billions in tariffs. The report, released days before President Trump’s summit with Xi Jinping, labels the practice a “fraud cloaked in paperwork” and notes that AI tools are now monitoring for transshipment. China’s embassy dismisses the accusations, calling them a step toward “unilateral actions” that unfairly target third parties. The revelations could reignite tensions amid lingering sanctions on robotics and drone exports. The US is preparing for a denouement at the upcoming high‑profile meeting. Keywords: US trade policy, China tariffs, transshipment, Peter Navarro, Trump tariffs, global trade, AI monitoring, Beijing embassy, trade war
The White House has just released a dizzying report that more than 40 nations—including Canada, India, Japan and South Korea—have been co‑operating with China to sidestep US tariffs by transshipping goods through countries that impose lower duties.
According to trade adviser Peter Navarro, the practice has cost American jobs and billions in revenue, while China’s embassy in Washington asserts that “trade wars have no winners” and objects to the United States’ use of state power.
Transshipment, the act of moving cargo through an intermediary country to reduce tariffs, is described by the House as a “fraud cloaked in paperwork.” This shift of goods has reportedly moved an estimated $30 bn to $300 bn of products through lower‑tariff routes, a figure that could reshape how US exporters navigate global supply chains.
White House officials say AI tools are now deployed to detect and counter transshipment attempts, a development that will likely affect future discussions with President Trump and Chinese leader Xi Jinping earlier in September.
Although most tariffs paused after talks in May 2025, Washington and Beijing have kept a steady stream of sanctions—ranging from restrictions on humanoid robots to tighter limits on drone exports—creating an atmosphere of uncertainty that could see new tariffs rise in the coming months.
