US accuses dozens of countries of helping China avoid Trump’s tariffs

A White House report claims that over 40 countries have assisted China in evading U.S. tariffs, leading to tens of billions of dollars in lost annual revenue. The report, from the Office of Trade and Manufacturing Policy, alleges these nations participate in a "shadow logistics network" by mislabeling Chinese goods as originating from their own countries. Key enablers identified include the European Union, Mexico, Canada, India, Japan, South Korea, and several Southeast Asian nations. The affected U.S. manufacturing sectors include electrical equipment, integrated circuits, and motor components. The White House stated that countries facilitating these transshipments are being warned and that border authorities are enhancing enforcement using artificial intelligence.

The Trump White House reported that countries are evading U.S. tariffs by rerouting exports through third nations, resulting in an estimated annual loss of $19 billion to $26 billion in tax revenue. China, in particular, has been identified as transshipping goods through over 40 countries for packaging and assembly since 2018 to circumvent tariffs, thereby continuing to grow its manufacturing sector. White House trade adviser Peter Navarro stated that this practice, referred to as a "transshipment scam," allows China to "launder its exports." The administration plans to penalize trade partners engaging in this practice through new trade frameworks. U.S. Customs and Border Protection is piloting an AI program to combat transshipments, with penalties including retroactive tariffs for falsified origin information.