White House report says over 40 nations facilitated China's evasion of U.S. tariffs
A U.S. administration report alleges that more than 40 countries have helped China bypass American tariffs by routing exports through nations with lower duties, a claim that comes ahead of a planned meeting between President Trump and President Xi.
The White House released a report on Thursday stating that more than 40 countries, including Canada, India, Mexico, Japan and South Korea, have assisted China in avoiding U.S. tariffs by transshipping goods through jurisdictions with lower import duties. Government and private-sector estimates cited in the report place the value of the diverted merchandise between $30 billion and $300 billion.
The report describes the practice as transshipping, where cargo is transferred in an intermediate country before reaching its final destination, and accuses China of repackaging items to conceal their origin in order to obtain reduced tariffs. It characterises the scheme as a sophisticated global network that enables tariff evasion.
"Trade wars have no winners," a spokesperson for the Chinese embassy in Washington said, adding that China opposes the U.S. tariff measures and any unilateral actions that target third-party interests.
The United States has warned that the findings could become a point of contention ahead of the September summit between President Donald Trump and Chinese President Xi Jinping. The report follows a series of sanctions exchanged between the two countries, including recent restrictions on certain robotics and drone exports.
The BBC has sought comment from the embassies of the listed trading partners.