US Says Dozens of Countries Helped China Dodge Trump’s Tariffs

Sun Sep 06 2026 01:04:45 GMT+0000 (Coordinated Universal Time)

White House reveals China used more than 40 nations to evade U.S. tariffs, costing millions of jobs and billions in revenue.

The White House released a report accusing China of routing shipments through more than 40 countries to avoid Trump‑era tariffs. The practice, described as a transshipment scam, allegedly saves China billions of dollars and has pushed U.S. jobs to the line. Experts warn that the scheme could become a bargaining chip ahead of a September U.S.–China summit, adding complexity to already tense trade relations. The U.S. has begun employing AI tools to detect such smuggling, but diplomats argue the issue remains a core dispute in bilateral negotiations. The story underscores the continuing tariff war between the two economic giants.

US says dozens of countries helped China dodge Trump’s tariffs

The White House released a report on Thursday claiming that more than 40 nations – including Canada, India, Mexico, Japan and South Korea – have been used by China to reroute exports and avoid the high duties imposed by the U.S. government. The practice, described as a "transshipment scam", allegedly allowed China to sidestep tens of billions of dollars worth of tariffs.

Peter Navarro, a senior adviser in trade, said the maneuver has cost American workers and cut revenue by billions. A spokesperson from the Chinese embassy in Washington responded that "trade wars have no winners" and criticised the use of state power to target Chinese companies. The embassy added that any unilateral action on transshipment must not harm third parties.

Sources say that between $30 billion and $300 billion worth of goods have moved through lower‑tariff corridors, a figure the government estimates are stuck in a shadow network. This transshipping – the practice of moving cargo through a third country to reach its final destination – is labelled by the House as "fraud cloaked in paperwork."

The United States has incorporated artificial intelligence systems to detect and intercept the smuggling routes. The disclosure comes weeks before President Donald Trump will meet Chinese leader Xi Jinping in Washington, an encounter that may set the tone for future trade negotiations.

Experts say the revelations could provide the U.S. with a stronger bargaining position. Chang Pao Li, an associate professor of economics at Singapore Management University, noted that the report might highlight how third‑country routing allows China to retain market access indirectly, thereby complicating any trade settlement. She warned that economies more integrated into Chinese supply chains could face additional cost and risk.

The U.S. and China have continued to impose sanctions despite a pause over tariffs following talks in May 2025. In April 2025, Trump unveiled new levies on dozens of international partners to supposedly boost American jobs, a series of measures later struck down by the Supreme Court. Critics argue that the administration keeps rolling out new tariffs through alternative legal means to maintain pressure on China.