In brief
White House officials released a report alleging that a network of over 40 countries has helped China evade billions of dollars in U.S. tariffs by rerouting goods through low‑duty jurisdictions. Canada, India, Mexico, Japan and South Korea are named among those assisting this “transshipment” scheme. Trade adviser Peter Navarro warned the practice threatens American jobs and revenue, while China’s embassy decried the allegations as unjustified. The revelations precede a September meeting between President Trump and Chinese leader Xi Jinping, amid a broader array of sanctions and counter‑sanctions.
The White House released a findings report this Thursday, claiming that more than 40 nations—including Canada, India, Mexico, Japan and South Korea—have aided China in sidestepping U.S. tariffs by shipping goods through countries that charge lower import duties. The alleged scheme allegedly costs American jobs and billions in revenue, according to trade adviser Peter Navarro.
China’s embassy in Washington urges that the United States stop targeting the interests of third parties and warns that the tariffs and use of state power against Chinese firms have no winners. The report follows a long‑running trade dispute between the United States and China, with both sides imposing sanctions on a variety of goods, from drones to humanoid robots.
The White House describes the transshipment network as a sophisticated “shadow network” that uses paperwork to disguise the true origin of goods so they can avoid the higher tariffs imposed by the U.S. Officials say that the network moves goods valued from $30 billion up to $300 billion in the trade‑imposed tariffs.
The release comes just weeks before President Trump is scheduled to meet Chinese leader Xi Jinping in Washington. Although many U.S. tariffs were dropped after talks in May 2025, the Trump administration has kept up a cycle of sanctions, counter‑sanctions and new tariffs to protect American industry and support jobs. The findings are expected to create fresh friction as the two leaders prepare for the upcoming summit.
