The White House has accused more than 40 countries of helping China sidestep US tariffs by routing exports through nations that face lower American import duties, according to a BBC News report on the administration's report released Thursday. 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.
What the White House alleges
The process at the centre of the report is known as transshipping, which refers to the practice of transferring cargo through another country while en route to a final destination, according to the BBC report. The US accused China of "taking advantage" of this practice by moving goods through nations that have lower duties. China has used third countries as a stopover and repackaged goods to hide their real origin to obtain lower tariffs, the White House wrote, describing the process as "fraud cloaked in 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.
White House trade adviser Peter Navarro said the evasion had cost "American jobs and billions in revenue."
Named countries and responses
The report lists more than 40 countries, with Canada, India, Mexico, Japan and South Korea singled out. The BBC reported it had contacted the US embassies of those countries and other trading partners listed in the report for comment.
A spokesperson for the Chinese embassy in Washington told the BBC that "trade wars have no winners" and that China opposes the US' tariff measures and the use of state power to target China's companies. The spokesperson added that "any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties."
Scale of evasion and enforcement
According to government and private sector estimates quoted by the White House, between $30bn (£22.2bn) and roughly $300bn in goods have been moved from countries with higher tariffs through those with lower rates. The White House said it has deployed artificial intelligence (AI) tools to catch transshipment efforts.
| Date / period | Event |
|---|---|
| April 2025 | Trump unveiled sweeping levies on dozens of US trading partners |
| May 2025 | Talks led to a pause in most tariffs |
| Thursday (report date) | White House report named 40+ countries in transshipment scheme |
| September | Trump and Xi scheduled to meet in Washington |
Trade timeline and upcoming summit
The report follows a wave of sanctions between the US and China and comes weeks before President Donald Trump will meet Chinese leader Xi Jinping in Washington, according to the BBC. The report is expected to add to key sticking points between the sides as the two leaders prepare to meet in the US in September.
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. 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. 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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