The Trump administration just named and shamed more than 40 countries for allegedly helping Chinese exporters dodge US tariffs through what it calls an elaborate transshipment network. The White House Office of Trade and Manufacturing Policy released its findings in a report titled “The Great Transshipment Scam.”
The core allegation: Chinese goods are being relabeled, rerouted, and stamped with false country-of-origin claims before entering the US, effectively sidestepping the steep duties Washington has imposed. The list of accused enablers includes Mexico, Canada, the EU, India, Japan, and South Korea.
The numbers behind the accusation
According to the report, approximately $75 billion in goods were improperly transshipped between February 2025 and February 2026. That figure translates into an estimated $19 billion to $34 billion in lost US tariff revenue over the same period.
The report, spearheaded by trade adviser Peter Navarro, argues that the practice isn’t just passive negligence by these countries. It contends that the nations involved have a direct financial incentive to look the other way, because transshipment generates fees, creates local jobs, and produces tax revenue for the host countries facilitating the rerouting.
