The United States has accused more than 40 countries of helping China circumvent US tariffs by allegedly routing Chinese goods through third countries and using false labels.
A White House report said the practice, described as the “Great Transshipment Scam,” is costing the US government tens of billions of dollars in lost annual revenue.
The report identified the European Union, Mexico, Canada, India, Japan and South Korea among China’s major alleged enablers. Several Southeast Asian countries, including Indonesia, Thailand, Malaysia and Cambodia, were also accused of playing important roles in the transshipment network.
According to the report, US industries most affected include electrical equipment, integrated circuits, aluminium products and motor components.
The White House warned countries involved in such activities that they would face increased scrutiny. US border authorities are also using artificial intelligence to analyse shipment data and strengthen enforcement.
“The age of untraceable illegal transshipment is over,” the Office of Trade and Manufacturing Policy said.
China’s embassy in Washington had not immediately responded to the allegations, while the countries named in the report had yet to publicly comment.
The accusations come as President Donald Trump continues to pursue protectionist trade policies aimed at increasing US manufacturing and limiting what his administration considers unfair trade practices.
Trade expert Amitendu Palit of the National University of Singapore said the report appeared to be another attempt by the Trump administration to pressure other countries into giving greater market access to US goods.
The latest accusations could further increase tensions between Washington, Beijing and other major trading partners as the US continues to tighten its trade policies.
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