China’s tariff evasion scandal: Dozens of nations accused of helping C

More than 40 countries have been accused by the White House of helping China evade US tariffs by routing exports through nations with lower import duties. The practice, known as transshipping, has allowed China to sidestep tens of billions of dollars in tariffs.

Tariff Evasion on a Global Scale

The White House report, released on Thursday, names Canada, India, Mexico, Japan, and South Korea as countries that have helped China evade US tariffs. According to the report, between $30bn and $300bn in goods have been moved from countries with higher tariff rates through those with lower rates. This process is used by China to hide the origin of its goods and obtain lower tariffs.

White House trade adviser Peter Navarro said that China's tariff evasion has cost "American jobs and billions in revenue". The US has accused China of "taking advantage" of the practice by moving goods through nations with lower duties. China has used third countries as a stopover and has repackaged goods to hide their real origin.

Global Shadow Transshipment Network

The White House has described the process as "fraud cloaked in paperwork". The report states that the US has deployed artificial intelligence (AI) tools to catch transshipment efforts. The White House wrote that what has changed in today's Great Transshipment Scam is not merely the speed and scale of this modern form of smuggling, but the breadth, depth, and sophistication of the global Shadow Transshipment Network through which China's tariff evasion now moves.

A spokesperson for the Chinese embassy in Washington said that "trade wars have no winners" and that it opposes the US' tariff measures and the use of state power to target China's companies. The spokesperson added that "any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties".

US-China Trade Tensions Escalate

The report comes weeks before President Donald Trump will meet Chinese leader Xi Jinping in Washington. The US and China have continued to exchange sanctions, including restrictions on humanoid robots shipped to the US and tighter Chinese curbs on drone exports. Despite a pause in most tariffs following talks in May 2025, Washington and Beijing have continued to exchange sanctions.

The report is expected to add to key sticking points between the sides as Trump and Xi prepare to meet in the US in September. The US has repeatedly introduced new tariffs using alternative legal levers to continue its signature policy. The US has accused China of using third countries as a stopover and has repackaged goods to hide their real origin.

The report highlights the ongoing trade tensions between the US and China. The US has accused China of unfair trade practices, including intellectual property theft and forced technology transfer. China has denied these allegations and has accused the US of protectionism. The trade tensions have led to a series of tariffs and counter-tariffs, which have hurt both countries' economies.

The meeting between Trump and Xi in September will be closely watched by the global community. The two leaders will need to find a way to resolve their differences and reach a trade agreement. The report's findings will likely be a major topic of discussion during the meeting.

Source: JOY