White House alleges 40 countries helped China evade tariffs
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The White House has accused more than 40 countries of helping China avoid US tariffs by routing goods through countries facing lower duties. It says the alleged practice has cost US jobs and billions in revenue, and is likely to intensify trade tensions before President Donald Trump’s planned September meeting with Chinese leader Xi Jinping.
Countries named include Canada, India, Mexico, Japan and South Korea. The report estimates that between $30bn (£22bn) and $300bn of goods may have been transshipped, sometimes repackaged to conceal their origin; China rejected the accusations, saying trade wars have no winners and third parties should not be harmed.
- White House alleges widespread Chinese tariff evasion through third countries.
- More than 40 countries were named in the report.
- Claims could complicate Trump and Xi’s September meeting.
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US tariffs are taxes charged on imported goods. They can make foreign products more expensive in the United States, and are often used to protect domestic producers or to put pressure on trading partners.
China is a major exporter to the US and has faced several rounds of American tariffs in recent years. The US government says some Chinese-made goods are being sent first to other countries, then exported to the US in a way that may reduce the tariff charged.
This practice is known as transshipment. It can be legal when goods are genuinely processed elsewhere, but authorities may treat it as tariff evasion if products are simply rerouted or their origin is misrepresented.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of the White House report argue that deliberately routing Chinese-made goods through third countries to evade tariffs undermines laws enacted to protect American industry and workers. They contend that robust enforcement is needed to preserve tariff revenue, deter unfair trade practices and ensure that companies competing fairly are not disadvantaged by opaque supply chains.
The case against
Critics argue that complex international supply chains do not by themselves prove intentional tariff evasion, since legitimate manufacturing, assembly and value-added work often takes place across several countries. They caution that broad accusations against dozens of trading partners could damage diplomatic and commercial relationships, burden legitimate businesses with compliance costs, and encourage protectionist measures that raise prices for American consumers.
More coverage
- Fox News — White House exposes ‘Transshipment Scam’ costing US up to $26B, points finger at China
- BBC World — US says dozens of countries helped China dodge Trump's tariffs
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Originally published by The Hill as “White House accuses over 40 countries of helping China avoid US tariffs”.