In brief
White‑House officials claim a network of over 40 global partners forged a transshipment scheme that allowed China to sidestep US tariffs. The report cites Canada, India, Mexico, Japan, and South Korea as key players, moving billions of dollars in goods through lower‑tariff routes. China’s embassy argues that such transshipping is lawful and warns against targeting third parties. The allegations come as President Trump and Chinese leader Xi Jinping prepare for a high‑stakes meeting in Washington.
The White House has revealed that more than forty countries have helped China skirt Trump’s tariffs by moving Chinese goods through nations with lower duties.
Key participants named include Canada, India, Mexico, Japan and South Korea, and officials estimate that China avoided billions of dollars in tariffs by using these intermediaries.
White‑House trade adviser Peter Navarro warned that the scheme ‘cost American jobs and billions in revenue’.
A spokesperson for the Chinese Embassy in Washington said the US measures “have no winners” and that China opposes any unilateral action that harms third‑party interests.
The report follows a long‑running trade standoff and arrives just weeks before the President meets Chinese official Xi Jinping in Washington.
Estimates by US and private sector analysts suggest that between thirty and three‑hundred billion dollars of goods have been routed via lower‑tariff countries, a practice known as transshipping.
White‑House officials described China’s approach as a sophisticated “Shadow Transshipment Network” and highlighted the use of AI tools to detect such activity.
The allegations are expected to further complicate negotiations ahead of the September meeting between Trump and Xi, even after a pause in most tariffs following talks in May 2025. The US remains in a cycle of imposing new levies and a Supreme Court ruling has struck down earlier sanctions, keeping pressure on Chinese firms.
