The White House said in a report Thursday that more than 40 countries have helped China circumvent US tariffs by routing their exports through nations facing lower US import duties. The countries named include Canada, India, Mexico, Japan and South Korea, which the White House said had helped China evade tens of billions of dollars in tariffs. White House trade adviser Peter Navarro said it had cost “American jobs and billions in revenue.” A spokesperson for the Chinese embassy in Washington said in response to questions from the BBC that “Trade wars have no winners” and that it opposes US tariff measures and the use of state power to attack Chinese companies. The spokesperson added that “any unilateral action or agreement related to transshipped goods must not target or harm the interests of third parties.” The BBC has contacted the US embassies of Canada, India, Mexico, Japan, South Korea and other trading partners listed in the report for comment. Leader Xi Jinping in Washington. According to government and private sector estimates cited by the White House, between $30bn (£22.2bn) and around $300bn of goods have moved from countries with higher tariffs through those with lower rates. The process is known as transshipment, which refers to the practice of transferring cargo through another country while en route to a final destination. The United States accused China of “taking advantage” of the practice to move goods through nations that have lower tariffs. China has used third countries as a stopover and repackaged goods to hide their true origin to obtain lower tariffs, the White House said in its report, describing the process as “fraud disguised as paperwork.” “Shadow transshipment network through which China’s tariff evasion now moves,” the White House wrote. The United States has deployed artificial intelligence (AI) tools to detect transshipment efforts, he added. The report is expected to add to major sticking points between the sides as Trump and Xi prepare to meet in the United States in September. drone exports. In April 2025, Trump unveiled sweeping taxes on dozens of America’s trading partners based on a long-held belief that tariffs will help boost American jobs and the economy. Those sanctions have since been overturned by the US Supreme Court, but Trump has repeatedly introduced new tariffs using alternative legal levers to continue his signature policy.
