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US report alleges China used transshipping to dodge tariffs
The White House says transshipping through lower-tariff countries helped move between $30 billion and roughly $300 billion in goods.
The White House said in a new report that more than 40 countries have helped China sidestep US tariffs by routing exports through nations that face lower American import duties, according to BBC Business. The countries cited include Canada, India, Mexico, Japan, and South Korea.
The report estimates that between $30 billion and roughly $300 billion in goods were moved from higher-tariff countries through those with lower rates, describing the practice as transshipping. It also says China repackaged products and used third countries as stopovers to obscure the goods' origin and qualify for lower tariffs.
White House trade adviser Peter Navarro said the approach cost American jobs and billions of dollars in revenue. The White House also characterized the scheme as “fraud cloaked in paperwork,” adding that the US has deployed artificial intelligence tools to detect transshipment efforts.
China’s embassy spokesperson in Washington, responding to BBC queries, said trade wars have no winners and that China opposes US tariff measures and the use of state power to target Chinese companies. The report comes as the US and China prepare for a meeting between President Donald Trump and Chinese leader Xi Jinping in Washington.