A container ship carrying cargo moves away from the Verrazzano-Narrows Bridge in New York City on November 2. A new White House report accuses Chinese companies of doing limited assembly and repackaging in third countries to avoid U.S. tariffs. File Photo by John Angelillo/UPI | License Photo
Aug. 14 (UPI) -- The White House said the United States has lost out on up to $26 billion in tax revenue each year after Chinese exporters routed goods through other countries to avoid President Donald Trump's tariffs.
The administration made the allegations Thursday in a report titled "The Great Transshipment Scam."
It said Chinese companies diverted goods through more than 40 countries with lower tariffs after Trump and China launched into a trade war in 2018. These alleged third-party countries include Canada, Mexico, Japan, South Korea, the European Union and Israel.
The report accused the Chinese companies of disguising the goods' country of origin by performing limited assembly through the third country along with deceptive labeling, packaging and invoicing and through fake declarations. These actions created "the appearance of a different national origin," the report said.
