The US loses billions in annual revenue to the practice of routing goods through intermediate countries to disguise their origin, a White House report has estimated. Peter Navarro said US Customs was already using AI to identify offenders.

White House alleges that companies are systematically routing trade through third-party nations to evade US tariffs.

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.