White House Says 40+ Nations Helped China Evade Tariffs

The White House said dozens of countries have helped China avoid US tariff charges by routing exports through nations with lower duties, potentially costing the US tens of billions of dollars.

In a report released on Thursday, the administration said more than 40 countries had played a role in what it described as efforts to sidestep US import costs. It named Canada, India, Mexico, Japan and South Korea among those it said had supported China’s ability to “evade” tariffs by shifting goods through third jurisdictions.

White House trade adviser Peter Navarro said the practice had harmed the US economy, adding that it cost “American jobs and billions in revenue”.

White House describes “transshipping” networks

The report focuses on a process known as transshipping, in which cargo is transferred through another country while en route to its final destination.

The White House said US and private sector estimates show between $30bn (£22.2bn) and roughly $300bn in goods has been moved from countries with higher tariff rates to those with lower ones. It accused China of taking advantage of the approach by using third countries as stopovers and by repackaging goods to conceal their real origin.

In its account, the US administration portrayed the method as being carried out through what it called a global network. It also said it had deployed artificial intelligence (AI) tools to identify and target transshipment efforts.

China rejects tariff measures targeting firms

A spokesperson for the Chinese embassy in Washington said in response to BBC questions that “trade wars have no winners” and that China opposes the US tariff measures, including the use of state power aimed at Chinese companies.

The spokesperson added that “any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties.”

The BBC said it had contacted US embassies of Canada, India, Mexico, Japan and South Korea, along with other trading partners listed in the report, seeking comment.

Ahead of Trump-Xi meeting

The report comes after a series of sanctions and countermeasures between Washington and Beijing. It is due to add to tensions as President Donald Trump prepares to meet Chinese leader Xi Jinping in Washington in September.

Although most US tariffs were paused following talks in May 2025, both sides have continued to exchange restrictions. The White House cited US limits on humanoid robots shipped to the country, and said China has tightened curbs on drone exports.

In April 2025, Trump unveiled sweeping levies covering dozens of US trading partners, saying tariffs would help boost American jobs and economic performance. Those measures were later struck down by the US Supreme Court, but Trump has introduced new tariffs using other legal routes to maintain what he has repeatedly called a core policy.

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14 August 2026