US claims 40+ nations helped China bypass tariffs
The White House has accused more than 40 countries, including India, Canada, Mexico, Japan and South Korea, of helping China evade US import tariffs by routing exports through nations with lower duties.
In a report released on Thursday, the US administration said the practice of transshipping had allowed Beijing to bypass tariffs worth tens of billions of dollars. Transshipping is a common logistical practice in global trade, but the US maintains that China has used it deliberately to avoid customs duties by repackaging goods and obscuring their country of origin.
White House trade adviser Peter Navarro said the alleged evasion had cost "American jobs and billions in revenue". The report cites government and private sector estimates suggesting that goods worth between $30 billion and $300 billion were moved through third countries to dodge tariffs.
The White House described the scheme as "fraud cloaked in paperwork" and accused China of running a "global shadow transshipment network". It said the US had employed artificial intelligence tools to identify suspicious cargo and trade patterns.
In response, a spokesperson for the Chinese embassy in Washington said that "trade wars have no winners" and that China opposes the US tariff measures and the use of state power to target Chinese companies. The spokesperson added that "any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties."
The report does not indicate whether the countries named were willing participants or unwitting transit points. The BBC has contacted the US embassies of these nations for comment, but none had responded at the time of writing.
The development adds to existing tensions between Washington and Beijing ahead of a scheduled meeting between US President Donald Trump and Chinese leader Xi Jinping in Washington in September. The talks are expected to address a range of disputes, including tariffs, technology restrictions and trade imbalances.
In April 2025, Mr Trump imposed sweeping tariffs on dozens of US trading partners, arguing they would protect American jobs and industries. However, the US Supreme Court struck down those tariffs, ruling that the administration had exceeded its authority. Since then, the Trump administration has introduced new tariffs through alternative legal channels, maintaining pressure on trading partners.
Despite a temporary pause in most tariffs after talks in May 2025, both countries have continued to levy sanctions on each other. Recent actions include US restrictions on imports of Chinese humanoid robots and tighter Chinese controls on drone exports.
Trade analysts say the report is likely to become a sticking point in the upcoming meeting. Transshipping has emerged as a major concern for the US, which sees it as a way for China to undermine tariff policy and gain an unfair trade advantage.
The White House report is part of a broader enforcement push, which includes increased inspections of cargo shipments and enhanced data sharing with partner nations. However, such unilateral actions can strain diplomatic relations, especially with countries that are both US allies and key trade partners.
