More than 40 countries helped China evade US tariffs, White House report says

Written by

in

International

More than 40 countries have helped China evade US tariffs, according to a White House report. Chinese goods were routed through these countries with the aim of selling products in the US market while paying comparatively lower import duties.

Countries named as having assisted China include Canada, India, Mexico, Japan, and South Korea. The White House claims China evaded tens of billions of dollars in US tariffs through these countries.

White House trade adviser Peter Navarro said this has affected “American jobs” while also causing tens of billions of dollars in lost revenue.

However, a spokesperson for the Chinese embassy in Washington denied the allegations, saying “no one wins in a trade war.” The spokesperson opposed US tariff impositions and the use of state power against Chinese companies.

The spokesperson also warned that any unilateral action or agreement regarding goods routed through third countries should not harm the interests of other nations.

Meanwhile, trade tensions between the US and China remain unresolved. Amid this, US President Donald Trump is expected to meet with Chinese President Xi Jinping in Washington in a few weeks.

The White House report said that, according to various public and private sector estimates, goods worth between $30 billion and roughly $300 billion were routed from higher-tariff countries through lower-tariff countries.

This process is known as “transshipment” — meaning goods are routed through a third country on their way to their final destination. The US alleges China used lower-tariff countries to evade duties through this method.

The White House claims China used third countries as intermediate destinations while also relabeling products to conceal their true origin, allowing these goods to enter the US market at lower tariff rates. The report describes this process as “paper fraud.”

The report further states that the US is now using artificial intelligence technology to combat China’s tariff evasion.

According to Chang Pao-Li, associate professor of economics at Singapore Management University, the report could strengthen Washington’s bargaining position in US-China trade negotiations.

Chang told the BBC that the US could argue China has maintained indirect access to the US market through third countries. He said that in any future major trade agreement, third-country transshipment would need to be considered alongside direct Chinese exports.

However, Chang said some of this shift in trade flows could also be legitimate, resulting from companies relocating manufacturing or restructuring supply chains. As a result, countries deeply integrated with China’s supply chains could face risks and additional costs.

Although most tariffs were suspended after talks between the two countries in May 2025, retaliatory sanctions and trade restrictions between the US and China have continued. The US recently imposed restrictions on Chinese humanoid robots, prompting China to tighten controls on drone exports to the US in response.

In April 2025, Trump imposed blanket tariffs on goods from 157 countries, arguing the tariffs would boost US employment and strengthen the economy. The US Supreme Court later ruled against those tariffs, but Trump has continued imposing new tariffs using alternative legal authority.

বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report

More in English

English edition