In brief
The White House has issued a report alleging that more than 40 countries—Canada, India, Mexico, Japan, South Korea and others—have enabled China to sidestep U.S. tariffs by shipping goods through nations with lower duties. The claim estimates that between $30 bn and $300 bn in goods have moved through this shadow network, a practice the government labels a “fraud cloaked in paperwork.” The administration asserts that the practice has inflicted damage on American jobs and revenue, and has deployed artificial‑intelligence tools to detect the transshipment. Chinese officials dismissed the allegations, stating that trade wars benefit no one and decrying any unilateral targeting of Communist Party‑owned firms. The report comes weeks before President Donald Trump’s planned meeting with Chinese leader Xi Jinping, amid continued sanctions and tariff escalations from both sides.
The White House released a report Thursday alleging that more than 40 countries—including Canada, India, Mexico, Japan and South Korea—have helped China avoid billions of dollars in U.S. tariffs by routing goods through low‑duty nations.
The report says that China has moved between $30 bn and $300 bn of goods through this “shadow transshipment network,” a practice the government describes as a fraud “cloaked in paperwork.”
U.S. trade adviser Peter Navarro warned that the scheme has cost American jobs and billions in revenue, and announced that the administration has employed artificial‑intelligence tools to detect and counter transshipment schemes.
In response, a spokesperson for the Chinese embassy in Washington said the Chinese side opposes the U.S. tariff measures and believes trade wars have no winners, adding that “any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties.”
The White House’s findings come as the U.S. and China continue to impose sanctions on each other—including limits on importing certain Chinese drones and sign‑off on humanoid robots—despite a temporary pause in tariffs earlier this year.
The report adds pressure on both sides as President Donald Trump is slated to meet with Chinese president Xi Jinping in Washington later this month, raising questions about the future of U.S.‑China trade relations.
