The countries named include Canada, Mexico, and Japan. The United States claims Chinese goods are entering the US market through these countries, rerouted or relabeled, allowing China to avoid additional tariffs. The report was covered by the Financial Times.
The allegation was made recently in a White House report titled “The Great Transshipment Scam.” It said the practice of routing Chinese goods through other countries into the United States puts approximately $60 billion in trade tariffs at risk of evasion. Citing other US government and private-sector reports, the White House said the volume of such goods could range from $40 billion to as much as $303 billion.
Many refer to this method of routing goods into the US as “transshipment.” Put simply, instead of shipping a product directly from China to the United States, it is first taken to another country, from where it is then shipped on to the US. This can create confusion over the product’s true origin or place of manufacture, allowing exporters to avoid the additional tariffs specifically imposed on China.
The report was published by the White House’s Office of Trade and Manufacturing Policy. Office director Peter Navarro said: “Since the first tariffs were imposed on China in 2018, Beijing has been rerouting goods through extremely sophisticated methods. This trend has increased further since President Donald Trump imposed new tariffs on various countries last year.”
Navarro claims that as tariff rates diverge sharply between countries, the tendency to route goods through third countries is increasing, with Chinese goods being sent to lower-tariff countries before being taken to the United States.
The White House report said that alongside China, other countries facing higher tariffs may also be following the same strategy. Navarro specifically named India and Vietnam. He warned that if the US raises tariffs on other countries, they too could turn to similar methods of routing goods.
The report’s publication comes roughly six weeks before Chinese President Xi Jinping’s planned visit to Washington. Xi had earlier welcomed US President Donald Trump in Beijing in May. As a result, diplomats believe the new allegation could add fresh pressure to trade talks between the two countries.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer recently raised concerns over rare earth exports in a phone call with Chinese Vice Premier He Lifeng. The US alleges there are questions over whether China is properly honoring its commitments to reduce exports of these critical minerals.
The report said the United States is also deploying new technology to curb tariff evasion through transshipment. Navarro said US Customs and Border Protection has begun using an artificial intelligence-based system called “Detective Border,” which will better identify the composition and nature of imported goods while working to ensure accurate labeling of products for tariff purposes.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report