US Alleges Global Network Helped China Circumvent Tariffs, Names Over 40 Countries

The United States has accused more than 40 countries of helping China evade American tariffs through a vast transshipment network, claiming the practice has deprived Washington of tens of billions of dollars in annual revenue and undermined domestic industries.

In a report released by the White House, officials alleged that Chinese goods have been entering the US market through intermediary countries under false labels or altered documentation, allowing exporters to avoid higher duties imposed on products originating from China. The administration described the operation as the “Great Transshipment Scam” and said it has become increasingly sophisticated since the trade tensions between Washington and Beijing began in 2018.

According to the report, countries identified as major facilitators include the European Union, Mexico, Canada, India, Japan and South Korea. Several Southeast Asian nations, including Indonesia, Thailand, Malaysia and Cambodia, were also cited as playing an important role in the alleged network.

US officials said Chinese exporters have been routing products through third countries, where goods are repackaged, relabelled or minimally processed before being shipped to the United States. By changing the apparent country of origin, companies can avoid tariffs specifically targeted at Chinese imports. The White House estimates that billions of dollars worth of goods enter the US through such channels each year.

Peter Navarro, head of the Office of Trade and Manufacturing Policy, said the alleged scheme has harmed American workers, manufacturers and taxpayers. The report noted that sectors such as electrical equipment, integrated circuits, aluminium products and motor vehicle components have been particularly affected.

To counter the practice, US border authorities are strengthening enforcement measures and deploying artificial intelligence tools to analyse shipment data and identify suspicious trade patterns. Officials said the technology will help determine the true origin of imported products and improve tariff collection.

The accusations come despite ongoing efforts by Washington and Beijing to stabilise trade relations. While the countries named in the report have not publicly responded to the allegations, the issue is expected to add fresh tension to global trade discussions and could lead to stricter monitoring of international supply chains in the months ahead.