US accuses dozens of countries of helping China dodge Trump-era tariffs, leading to billions in lost revenue

A new report from the Trump White House alleges that over 40 countries have been actively assisting China in circumventing US tariffs, a practice that has reportedly led to billions of dollars in lost American revenue. The report, titled "The Great Transshipment Scam," details how Chinese goods are rerouted through these intermediary nations, often undergoing minimal processing or relabeling, to disguise their true origin and avoid higher duties imposed by the US. This "shadow logistics network" has allowed Chinese exporters to exploit differing tariff rates, undermining the intended impact of the Trump-era trade measures.

Among the countries identified in the report as "enablers" are major trading partners such as the European Union, Mexico, Canada, India, Japan, and South Korea, as well as several Southeast Asian and Latin American nations. The US administration estimates that this tariff evasion scheme is costing the country between $19 billion and $26 billion annually in lost tax revenue, with some broader estimates of transshipped goods reaching up to $303 billion.

In response to these allegations, the White House has announced plans to implement stricter enforcement measures, including the use of artificial intelligence to scrutinize cargo and documents at the border and to establish clearer rules for product origin. The report emphasizes that countries found to be facilitating these illegal transshipments are now "on notice" as the US aims to counter what it describes as an organized fraudulent act threatening its economic security.