The Trump administration has released a White House report accusing more than 40 countries of participating in illegal schemes to help Chinese goods enter the United States while circumventing tariffs. According to the document, this practice costs the federal government tens of billions of dollars in annual revenue. The report, published by the Office of Trade and Manufacturing Policy, refers to the operation as the “Great Transshipment Scam,” involving the relabeling, repackaging, and re-invoicing of Chinese products to obscure their origins.
Among the countries identified as major participants are the European Union, Mexico, Canada, India, Japan, and South Korea. Southeast Asian nations including Indonesia, Thailand, Malaysia, and Cambodia also play significant roles in the network. The transshipments have particularly affected American manufacturing sectors producing electrical equipment, integrated circuits, aluminium products, and motor components, the report indicates.
The White House has signaled stricter enforcement measures, warning that countries facilitating transshipments are being “put on notice.” Border authorities are now utilizing artificial intelligence technology to analyze shipment data in efforts to prevent illegal transshipments. Peter Navarro, who heads the trade office, emphasized that revenue lost through the scheme represents funds “stolen from American workers, manufacturers, and taxpayers.”
Neither China’s embassy nor the named countries have yet publicly responded to the allegations. The announcement represents the latest protectionist trade action from the Trump administration since taking office in January 2025.
Originally reported by Aljazeera →
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