The United States has raised allegations against 38 countries and the European Union, accusing them of participating in a covert network that facilitates the entry of Chinese goods subject to steep US tariffs into the American market through intermediary nations. This claim is detailed in a report titled “The Great Transshipment Scam,” which suggests that this potentially illegal practice could be worth approximately $60 billion and has allegedly led to considerable losses in US tariff revenue.
Among the nations and territories implicated in the report are significant global players such as India, Canada, the European Union, Israel, Japan, Mexico, South Korea, and Taiwan. Other countries mentioned include Brazil, Indonesia, Malaysia, Thailand, Turkey, Vietnam, Argentina, Azerbaijan, Bangladesh, Cambodia, Chile, Colombia, Costa Rica, the Dominican Republic, Georgia, Jordan, Kazakhstan, Kenya, Laos, Morocco, Myanmar, Oman, Panama, Peru, the Philippines, Singapore, Sri Lanka, Switzerland, the UAE, and Uzbekistan. The report specifically identifies Mexico, India, and Vietnam as major hubs for the alleged transshipment of Chinese goods to the US.
The document estimates that around $67 billion worth of goods destined for the US were allegedly rerouted from China through these key transshipment hubs in 2025, potentially leading to an estimated $28 billion loss in US tariff revenue. It highlights the Pune-Gujarat-Chennai corridor in India, suggesting that Chinese exports of items like electric pumps and compressors have not only bolstered businesses along this route but also intensified competitive pressures faced by American manufacturers.
In response to these findings, the US is considering a range of measures aimed at curbing such practices. Proposed actions include implementing stricter inspections and interdiction protocols, levying additional tariffs, imposing sanctions, and possibly restricting market access for nations that are found to facilitate tariff evasion. The report underscores the need for decisive actions to protect US economic interests and ensure compliance with existing tariff regulations.