WASHINGTON (AP) — The Trump White House said in a new report on Thursday that countries are routing their exports through third countries to avoid U.S. tariffs, estimating that there are tax revenue losses of $19 billion to $26 billion annually.
The report specifically highlights that China responded to new tariffs in 2018 by sending their goods to other nations ranging from Mexico to Malaysia for packaging and limited assembly — a practice known as transshipping. That pattern made it look like U.S. imports from China had dropped, but enabled Beijing to continue growing its manufacturing sector in ways that could challenge U.S. factories and employment.
