The US White House released a report on Thursday stating that over 40 countries have helped China evade tens of billions of dollars in tariffs by routing exports through nations with lower import duties. According to the report, between $30bn and $300bn worth of goods have been moved from countries with higher tariffs to those with lower rates, allowing China to "take advantage" of this practice called transshipping. The White House accused China of hiding the real origin of goods and repackaging them to obtain lower tariffs, describing it as a form of "fraud cloaked in paperwork". The report is expected to add to tensions ahead of a meeting between President Trump and Chinese leader Xi Jinping next month.
Written by the local model on 2026-08-14,
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same event (that is the story summary below).
Story summary
The US government has accused more than 40 countries, including Canada, India, Mexico, Japan, and South Korea, of helping China avoid paying tens of billions of dollars in tariffs by routing exports through nations with lower import duties. The White House report claims that this practice, known as "transshipment," has cost the US "American jobs and billions in revenue." The Chinese embassy in Washington responded that trade wars have no winners, and that China opposes the use of state power to target its companies. This controversy comes weeks before a meeting between US President Donald Trump and Chinese leader Xi Jinping**, and is part of an ongoing wave of sanctions between the two countries. The affected goods are estimated to be worth between $30bn and $300bn.
Written for “Tariff Evasion Crackdown” on 2026-08-31,
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Leaning score -0.40 for article 739 (medium confidence, 1 verified quote) · logged 2026-08-27
- Published
The White House said in a report on Thursday that more than 40 countries had helped China sidestep US tariffs by routing exports through nations that face lower American import duties.
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that → publish → 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, which are levied on companies importing goods.
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which → name → goods
White House trade adviser Peter Navarro said it had cost "American jobs and billions in revenue".
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it → say → revenue
A spokesperson for the Chinese embassy in Washington said "trade wars have no winners" and that it opposes the US tariff measures and the use of state power to target China's companies.
"
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it → say → companies
Any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties," the spokesperson added.
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spokesperson → concern → 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.
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BBC → contact → comment
The report follows a wave of sanctions between the US and China and comes weeks before US President Donald Trump will meet Chinese leader Xi Jinping in Washington.
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Trump → follow → Washington
Between $30bn (£22bn) and roughly $300bn in goods have been moved from countries with higher tariffs through those with lower rates, according to government and private sector estimates quoted by the White House.
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30bn → move → House
The process is known as transshipping, which refers to the practice of transferring cargo through another country while en route to a final destination.
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which → know → destination
The US accused China of "taking advantage" of the practice by moving goods through nations that have lower import duties.
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that → accuse → duties
China has used third countries as a stopover and has repackaged goods to hide their real origin to obtain lower tariffs, the White House said in its report, describing the process as "fraud cloaked in paperwork".
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House → use → paperwork
"What has changed in today's Great Transshipment Scam is not merely the speed and scale of this modern form of smuggling, but the breadth, depth, and sophistication of the global Shadow Transshipment Network through which China's tariff evasion now moves," the White House wrote.
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House → change → which
The US has deployed artificial intelligence tools to catch transshipment efforts, it added.
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it → deploy → efforts
Bargaining power
The report is expected to add to key sticking points between the sides as Trump and Xi prepare to meet in the US in September, and Chang Pao Li, associate professor of economics at Singapore Management University, said it could be used to strengthen the US bargaining position.
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it → expect → position
"Washington can argue that China has preserved access to the US market indirectly and that any broader trade settlement must therefore address not only direct Chinese exports but also third-country routing," she told the BBC.
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she → argue → BBC
Chang said while changes in trade-flow patterns may partly reflect legitimate production relocation and supply-chain reorganisation, the implication is that "economies with deeper integration with Chinese supply chains may now face additional risk and costs".
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economies → say → risk
Despite a pause in most tariffs following talks in May 2025, Washington and Beijing have continued to exchange sanctions, including restrictions on humanoid robots shipped to the US and tighter Chinese curbs on drone exports.
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Washington → follow → exports
In April 2025, Trump unveiled sweeping levies on dozens of US trading partners based on a long-held belief that tariffs will help boost American jobs and the economy.
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tariffs → unveil → jobs
Those sanctions have since been struck down by the US Supreme Court, but Trump has repeatedly introduced new tariffs using alternative legal levers to continue his signature policy.
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Trump → strike → policy
