White House says over 40 nations aid China in evading U.S. tariffs

The White House released a report on Thursday claiming that a network involving more than 40 countries helps Chinese exporters bypass U.S. tariffs by relabeling shipments, resulting in an estimated loss of tens of billions of dollars in annual revenue. The Office of Trade and Manufacturing Policy, led by Peter Navarro, identified the European Union, Mexico, Canada, India, Japan, South Korea and several Southeast Asian nations as key participants in what it termed a "Great Transshipment Scam."

According to the report, the scheme primarily affects U.S. manufacturers of electrical equipment, integrated circuits, aluminium products and motor components. The administration said border officials are now using artificial intelligence to cross-reference shipment data and other information to curb the practice.

"The message to the world is simple. The age of untraceable illegal transshipment is over," the trade office said.

China’s embassy in Washington did not respond to a request for comment, and the countries named have not publicly replied. The administration has also announced new duties of 10-12.5 percent on imports from nations it says have tolerated forced-labour practices. A coalition of 25 Democratic-led states has filed a lawsuit challenging those tariffs, arguing they are a pretext for reinstating previously struck-down duties.

Trade expert Amitendu Palit of the National University of Singapore described the report as another attempt by the Trump administration to pressure foreign markets into granting greater access for U.S. goods, noting that earlier tariff measures have already damaged the administration’s credibility.