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White House report says China leads global tariff transshipment scam
Fox News • • nation
Key Points:
- A White House report highlights concerns that foreign exporters, including China, Panama, Mexico, and Colombia, are routing goods through third countries to evade U.S. tariffs by misrepresenting the country of origin.
- The practice, known as transshipment, involves minimal processing in intermediary countries to disguise the true origin, potentially qualifying goods for lower tariffs and costing the U.S. Treasury an estimated $19 billion to $26 billion annually.
- The report, produced by the White House Office of Trade and Manufacturing Policy and led by Peter Navarro, identifies China as the most developed example of this practice, which expanded following the 2018 Section 301 tariffs.
- The Trump administration is enhancing enforcement measures, including using artificial intelligence to detect transshipment and applying retroactive tariffs to importers found falsifying product origins.
- The report precedes a planned visit by Chinese President Xi Jinping to Washington in September and signals ongoing efforts to address trade issues and tariff evasion ahead of high-level talks.
