Trump White House says it's losing $19B-$26 billion a year in revenue as countries dodge tariffs

Key Points:

• White House trade adviser Peter Navarro accused China of laundering exports through over 40 countries to evade U.S. tariffs, describing it as a "transshipment scam."
• Navarro highlighted that other nations, including India, also facilitate tariff avoidance, and the Trump administration plans to penalize trade partners engaging in such practices under new trade frameworks.
• The report estimates that $34.2 billion to $303 billion worth of goods are transshipped annually to avoid tariffs, with a central estimate of $75 billion, resulting in significant lost tax revenues.
• To combat transshipment, U.S. Customs and Border Protection is piloting AI technology to detect falsified origins of goods, allowing retroactive tariffs on imports up to a year prior.
• Despite tariff measures, the U.S. trade deficit remains large at $371 billion this year, though it is about $189 billion lower than the same period last year; some tariffs have faced legal challenges, including a Supreme Court reversal.