White House says over 40 countries help China evade US tariffs

The White House released a report on Thursday that accuses China of using a widespread transshipment network to sidestep President Donald Trump’s 2018 tariffs on Chinese goods. Titled “The Great Transshipment Scam,” the document claims that Chinese exporters have rerouted billions of dollars’ worth of merchandise through a chain of more than 40 countries—including Mexico, Israel, and several Southeast Asian nations—to avoid the U.S. duties. The White House says the scheme has cost the United States billions in lost tariff revenue, undermining the intended economic impact of the trade policy.

According to the report, the transshipment process involves moving goods from China to intermediary ports, where they are re‑labeled or re‑classified before being shipped to the United States. The analysis identifies a coordinated effort among Chinese firms and foreign partners to exploit loopholes in customs and trade documentation. The White House officials cited the data as evidence that the tariff strategy was weakened by these evasive practices, and they urged further investigation into the logistics and compliance mechanisms used by the involved countries.

The report concludes that the transshipment network not only erodes U.S. revenue but also distorts trade statistics and creates an uneven playing field for American manufacturers. It calls for enhanced enforcement of tariff regulations and greater transparency in supply‑chain reporting. The White House has indicated that it will pursue diplomatic and legal avenues to address the alleged violations and to protect U.S. economic interests.