US Accuses 40+ Countries of Helping China Dodge Tariffs
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US Accuses 40+ Countries of Helping China Dodge Tariffs

By Editorial TeamAug 14, 2026 · 2:53 PM3 min read
AI-generated representative image: A customs officer inspects shipping containers at a commercial port, illustrating trade enforcement and tariff evasion concer
Editorial Team
Editorial Team
White House report alleges a shadow transshipment network relabels Chinese goods, costing billions in lost duties

The Trump administration has accused more than 40 countries of helping China illegally evade United States tariffs through a shadow logistics network that relabels Chinese goods before they enter the US. The allegations were outlined in a White House report published on Thursday, which claims the practice is depriving government coffers of tens of billions of dollars in annual revenues.

The report, prepared by the Office of Trade and Manufacturing Policy, marks a significant escalation in Washington's trade enforcement efforts. By publicly naming major trading partners as alleged facilitators, the administration is signalling that countries which host transshipment operations will face increased scrutiny and potential consequences, with implications for global supply chains and diplomatic relations.

Major Allegations in the Report

The White House identified the European Union, Mexico, Canada, India, Japan and South Korea as China's biggest enablers in what it termed the "Great Transshipment Scam." Southeast Asian countries, including Indonesia, Thailand, Malaysia and Cambodia, were also described as playing "an important role" in the network.

US manufacturing sectors hit hardest by the transshipments include electrical equipment, integrated circuits, aluminium products and motor components, according to the report. The trade policy office, headed by Trump appointee Peter Navarro, warned that countries facilitating transshipments are being "put on notice."

Background on US Trade Policy

Trump has shaken up global trade with a series of protectionist policies since returning to the White House in January last year. In its latest trade salvo, the administration announced levies of 10 to 12.5 percent on imports from dozens of countries accused of turning a blind eye to forced labour.

A group of 25 Democratic-led US states, including New York, California and Colorado, has challenged those tariffs in court, calling the measures a pretext to reimpose Trump's sweeping "Liberation Day" duties. The US Supreme Court struck down those duties in February.

Official Statements and Expert Analysis

"Every dollar lost to this Great Transshipment Scam is a dollar stolen from American workers, manufacturers, and taxpayers," the trade policy office said in the report. It added that border authorities have employed artificial intelligence to integrate shipment data as part of strengthened enforcement efforts.

"The message to the world is simple. The age of untraceable illegal transshipment is over," the office stated. Amitendu Palit, a trade expert and professor at the National University of Singapore, described the report as the latest effort by the administration to coerce countries into accepting greater market access for US goods.

What Comes Next

China's embassy in Washington, DC, did not immediately respond to a request for comment sent outside of regular office hours. The dozens of countries named in the report have yet to publicly respond to its claims. The administration has signalled that strengthened enforcement efforts, including AI-driven shipment data integration, will continue as it pursues what it describes as economic sovereignty.

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