US says 40+ countries aided China in tariff evasion, costing billions

US report accuses multiple countries of aiding China in tariff evasion

The White House reported that more than 40 countries helped China sidestep US tariffs by routing exports through nations with lower import duties, a practice officials say cost American jobs and billions in revenue. The report named countries such as Canada, India, Mexico, Japan and South Korea and described widespread transshipping and repackaging to hide origins.

According to the report, estimates cited range from $30bn to roughly $300bn in goods moved from higher-tariff countries through lower-rate jurisdictions to evade US duties. The White House described the operation as a sophisticated global network that cloaks fraud in paperwork.

White House trade adviser Peter Navarro said the scheme hurt American jobs and revenue. A Chinese embassy spokesperson told the BBC that trade wars have no winners, that China opposes the US tariff measures, and that unilateral actions or agreements on transshipped goods must not harm third parties.

The administration said it has deployed artificial intelligence tools to detect transshipment efforts. The findings come amid ongoing sanctions exchanges between Washington and Beijing and ahead of a planned meeting between President Donald Trump and Chinese leader Xi Jinping in Washington.

Liberal News Analysis: What Does This Development Mean?

The report alleges a large-scale pattern of transshipping involving more than 40 countries and quantifies the estimated value of affected goods between $30bn and $300bn. It cites specific countries named by the White House and includes official statements from US trade officials and a Chinese embassy spokesperson. The report also notes the US use of AI to identify evasive trade practices.

Quick Glance: What You Need to Know

• More than 40 countries are named in a White House report alleging China used transshipment to avoid US tariffs.
• Estimated value of transshipped goods cited between $30bn and $300bn.
• The White House said AI tools are being used to detect transshipment; China called the tariff measures harmful to third parties.