The Trump White House said in a new report on Thursday that countries are routing their exports through third countries to avoid US tariffs, estimating that there are tax revenue losses of $19 billion to $26 billion (around €16.5 billion to €22.6 billion) annually.
Peter Navarro, the White House trade adviser, told reporters on a conference call that China is laundering its exports through more than 40 countries, though he claimed that the issues raised in the report were really more about other nations enabling the avoidance of tariffs.
“For years, the great transshipment scam has let communist China launder its exports,” Navarro said.
The report comes ahead of a planned September visit by Chinese leader Xi Jinping, who President Donald Trump described in flattering terms during his own visit to Beijing in May.
In response to increasing duties in 2018, China sent its goods to countries like Mexico and Malaysia for packaging and limited assembly, a practice known as transshipping, according to the research. Although Beijing was able to continue expanding its manufacturing sector in ways that could pose a threat to American firms and jobs, this trend gave the impression that US imports from China had decreased.
