The United States has leveled accusations against 38 countries and the European Union, claiming they are part of a “shadow transshipment network” that enables Chinese goods facing steep US tariffs to enter the US market by way of third countries. This accusation is detailed in a report titled “The Great Transshipment Scam,” which suggests that this potentially unlawful practice could be valued at around $60 billion, leading to significant losses in US tariff revenue.
The report identifies several countries and regions allegedly involved in this network, including India, Canada, the European Union, Israel, Japan, Mexico, South Korea, Taiwan, 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. These nations are said to facilitate the transshipment of goods that are initially from China but are rerouted through these territories to bypass US tariffs.
According to the document, approximately $67 billion worth of goods destined for the US were allegedly rerouted from China through major transshipment hubs such as Mexico, India, and Vietnam in 2025. This diversion is estimated to have resulted in about $28 billion in lost tariff revenue for the United States, highlighting the significant economic impact of these activities.
The report also draws attention to specific corridors, such as the Pune-Gujarat-Chennai corridor in India, where it claims Chinese shipments of products like electric pumps and compressors have not only benefited local businesses but have also intensified competitive pressures on US manufacturers. This suggests that these practices not only affect tariff revenue but also have broader implications for competitive dynamics in certain industries.
In response to these findings, the United States is considering a range of measures including stricter inspections and interdictions, the imposition of additional tariffs, sanctions, and possibly limiting market access for countries that are found to facilitate tariff evasion. These proposed actions reflect the seriousness with which the US is approaching this issue, seeking to safeguard its economic interests and enforce its trade policies more rigorously.