US claims China uses tariff arbitrage to dodge Trump-era levies
The US accuses dozens of countries of helping China bypass Trump-era tariffs, costing the US tens of billions annually.
The update
A new White House report alleges China is using a global network of more than 40 nations to bypass US tariffs. The trade policy office claims Chinese goods are being transshipped through countries with lower import duties, often repackaged or relabeled to hide their origin. This practice, described as a “Great Transshipment Scam,” is said to cost the US tens of billions of dollars in lost revenue annually.
Why it matters
Transshipment allows companies to pay lower tariffs by routing goods through third countries. The White House argues this undermines US trade policy and harms domestic manufacturers who face higher levies. The report identifies sectors like electrical equipment and integrated circuits as hardest hit by the diverted trade.
What to watch
The US has deployed AI tools to detect these patterns. The administration has placed dozens of countries on notice, signaling a potential escalation in trade enforcement. The report comes weeks before a scheduled meeting between President Donald Trump and Chinese leader Xi Jinping.
Sources
- aljazeera.com — Details on the 'Great Transshipment Scam', named countries, and sectors affected.
- bbc.co.uk — Context on transshipment, the estimated value of goods moved, and the upcoming meeting between leaders.
