US says dozens of countries helped China dodge Trump's tariffs
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- White House released a report identifying more than 40 countries, including Canada, India, Mexico, Japan, and South Korea, as helping China evade US tariffs by routing goods through lower-duty nations.
- Peter Navarro said the transshipment practice cost "American jobs and billions in revenue," and the report labeled the scheme "fraud cloaked in paperwork" run through a "global Shadow Transshipment Network."
- Estimates cited by the White House placed the value of tariff-evading goods moved through lower-duty countries between $30bn and roughly $300bn.
- China's embassy in Washington rejected the accusation, stating "trade wars have no winners" and warning that any agreements on transshipped goods "must not target or harm the interests of third parties."
- Trump and Xi Jinping are scheduled to meet in Washington in September, and Singapore Management University's Chang Pao Li said the report could strengthen the US bargaining position by extending demands beyond direct Chinese exports to third-country routing.
- US and China continue exchanging sanctions—including US restrictions on humanoid robot shipments and tighter Chinese curbs on drone exports—even though most tariffs remain paused following May 2025 talks.
Why it matters: The report hands Washington a fresh negotiating chip for the Trump-Xi summit by quantifying $30bn–$300bn in tariff-dodging trade flows, while simultaneously flagging Canada, India, Mexico, Japan, and South Korea—four of America's closest allies—as enablers, which could pressure those capitals to tighten export-origin enforcement or face secondary trade penalties.
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