President Donald Trump’s sweeping tariffs were designed to generate revenue and reshape global trade, but the higher costs have also reportedly created a powerful incentive for companies to find ways around them.
Trump Tariffs Fuel Incentive to Evade Import Taxes
The White House is now targeting a growing tariff-evasion problem that it says is costing the U.S. $19 billion to $26 billion in annual tax revenue.
A report published Tuesday from the White House Office of Trade and Manufacturing Policy said companies, particularly those dealing with Chinese goods, are routing shipments through third countries to avoid higher U.S. tariffs.
The practice, known as transshipment, can involve disguising the true country of origin of goods before they enter the U.S.
