White House estimates $19‑$26 billion annual revenue loss from tariff evasion

White House trade adviser Peter Navarro told reporters on a conference call that China is allegedly laundering its exports through more than 40 countries. The adviser, who has long been a vocal critic of Chinese trade practices, said the practice allows China to obscure the origin of goods and circumvent tariff and regulatory scrutiny.

Navarro’s claim follows a series of investigations into Chinese supply chains that have highlighted the complexity of global trade flows. He cited data indicating that Chinese firms use intermediary nations to re-export products, thereby masking their true source and potentially evading duties or sanctions. The statement was made amid ongoing U.S. efforts to tighten scrutiny of Chinese manufacturing and to address concerns about unfair trade advantages.

The White House has not yet released a formal policy response to Navarro’s allegations, and no independent verification of the numbers has been provided. The claim adds to a growing debate over how best to address perceived Chinese market distortions and the role of intermediary countries in global commerce.