U.S. Report Accuses Chinese Exporters of Evading Tariffs by Transshipping Through Over 40 Countries
Nashnova编辑部
The White House published a 25-page report accusing Chinese exporters of 'illegal transshipment' through over 40 countries to dodge U.S. tariffs, estimating the goods involved at $40 billion to $303 billion a year. Released roughly one month before an expected Xi–Trump summit, the report directly implicates the USMCA review and global supply-chain compliance.
What does "The Great Transshipment Scam" actually say?
The White House branded the report "The Great Transshipment Scam," accusing Chinese exporters of routing goods through third countries to bypass U.S. tariffs since the 2018 trade war began.
Cited methods include limited assembly, relabeling, repackaging, re-invoicing, and falsifying country-of-origin declarations. This means → the goods are still essentially "Made in China" — they just carry a different passport.
White House trade adviser Peter Navarro said the scheme has "hijacked tens of billions of dollars from the U.S. Treasury," and singled out Mexico as "one of the largest transshipment nations" — alleging China exploits USMCA's zero-tariff provisions to slip goods into the U.S.
How large is the alleged scale?
The report cites third-party estimates putting the annual value of suspected illegal or questionable transshipments at $40 billion to $303 billion — an enormous range.
Using $75 billion a year as its baseline, the White House modeled the impact: roughly 450,000 U.S. jobs lost and GDP damage of up to $150 billion.
The report itself states clearly that these figures are model estimates, not observed data. In plain terms = this is a "what if the assumption holds" scenario, not a measured statistic.
If tariffs of 25% to 45% were imposed on the goods in question, the U.S. would lose an estimated "tens of billions of dollars" in annual tariff revenue.
Which countries are named?
The 40-plus countries listed go well beyond Southeast Asian manufacturing hubs like Vietnam, Malaysia, and Thailand — they include Canada, Japan, South Korea, EU member states, and Israel, all core U.S. allies.
In Southeast Asia, the list covers nearly the entire region: Vietnam, Indonesia, Malaysia, Thailand, Singapore, Cambodia, Laos, Myanmar, and the Philippines. South Asia adds India, Bangladesh, and Sri Lanka.
This means → the report's aim is not limited to "low-cost alternative" economies. It implies that virtually every economy with significant China trade could fall under U.S. transshipment scrutiny.
How does the U.S. plan to enforce this?
The report announced an expansion of artificial intelligence in trade surveillance, specifically to identify transshipped goods. The initiative is named "Detective Border."
In plain terms = the U.S. wants to use AI to "check the shipping labels" — scanning massive trade datasets for suspicious origin claims.
How did China respond? Why is the timing sensitive?
Chinese embassy spokesperson Liu Chang said Beijing opposes "overextending the concept of national security," and warned that any "unilateral actions or agreements must not target or harm third-party interests."
Liu added that if such actions occur, China will "resolutely take necessary measures to safeguard its legitimate rights and interests."
The timing is notable: the report lands roughly one month before President Xi Jinping is expected to visit Washington for a summit with President Trump. Meanwhile, Mexico's transshipment issue has become a central topic in the USMCA joint review — the U.S. has refused to automatically extend the agreement for 16 years, partly over concerns about Chinese transshipment.
This reflects a dual purpose: the report is both a trade-enforcement signal and a bargaining chip ahead of the summit. The key question going forward: whether transit countries will materially tighten origin verification.
Content is for reference only, not financial advice.