Washington, August 14, 2026: The Trump administration has accused more than 40 countries of helping Chinese exporters avoid high US tariffs by routing goods through third countries before they reach American markets. The allegations were detailed in a new White House report describing the practice as a large-scale transshipment network.
What is Transshipment?
Transshipment involves sending goods from their original manufacturing country through another country before exporting them to the final destination. US officials allege that Chinese companies have increasingly used this method to disguise the origin of products and reduce or avoid tariffs imposed on Chinese imports.
According to the White House, goods can be repackaged, relabelled or undergo limited processing in another country before being shipped to the United States. Officials say this makes it harder for US authorities to determine where the products were actually manufactured.
More Than 40 Countries Named
The report identifies more than 40 countries and trading partners that Washington says are involved in, or vulnerable to, the transshipment network.
The countries highlighted include India, Mexico, Canada, Japan, South Korea and members of the European Union, along with several Southeast Asian nations such as Vietnam, Malaysia, Thailand, Indonesia and Cambodia.
Importantly, being named in the report does not necessarily mean that a country’s government deliberately helped China evade US tariffs. The report focuses on countries through which Chinese-origin goods may be routed.
Billions of Dollars in Lost Revenue
The White House estimates that the United States could be losing between $19 billion and $26 billion every year in tariff revenue because of transshipment. The administration’s central estimate puts the value of potentially transshipped goods at around $75 billion, although estimates cited in the report vary considerably.
US officials argue that the practice also puts American manufacturers at a disadvantage because imported goods can reach the US market while avoiding some of the duties intended to protect domestic producers.
India Among the Countries Flagged
India is among the countries mentioned by the United States. However, the US report does not, by itself, establish that the Indian government intentionally participated in tariff evasion.
Indian trade analysts have questioned the level of evidence behind the allegations. The Global Trade Research Initiative has argued that the report does not provide shipment-level details or identify specific Indian exporters involved in tariff circumvention.
US Plans Stronger Enforcement
The Trump administration says it intends to strengthen monitoring of international shipments and identify suspicious trade patterns more effectively.
The White House has also highlighted an AI-based system, described as “Detective Border,” which is intended to combine shipping and trade information to identify possible cases of tariff evasion. Officials have warned countries facilitating illegal transshipment that they could face tougher enforcement and penalties.
