Peter Navarro, the White House trade adviser, told reporters on a conference call that China is laundering its exports through more than 40 countries.

The Trump White House reports that countries are routing exports through third nations to avoid U.S. tariffs, causing tax revenue losses of $19 billion to $26 billion annually.

According to a report, foreign countries are transshipping as much as $75 billion in goods to the U.S. each year to evade tariffs.