'Great Transshipment Scam': US Names India Among 40 Hubs Of China's Tariff Evasion

"China began using these third countries for minor processing, relabeling, repackaging, reinvoicing, or routing changes that created the appearance of a new national origin," Navarro said.

A US report names India among over forty nations facing risks of transshipping Chinese goods. These countries could become conduits for products avoiding American import tariffs. The White House warns of intensified detection and penalties for such trade practices. India is categorized in the top-risk tier alongside

Trump administrationWhite House accuses slew of Southeast and Northeast Asian trade partnersShipping containers at the Port of Long Beach in California: The U.S. says it loses billions of dollars to illegal transshipment and that it is using AI to crack down on the practice. © ReutersJAMES HAND-CUKIERMANAugust 14, 2026

The Trump administration on Thursday released a sharply worded report accusing Chinese exporters of orchestrating a system of “illegal transshipment” through more than 40 third countries to dodge US tariffs, branding the practice “The Great Transshipment Scam.” The 25-page document claims Chinese firms have systematica