Massive Fraud Exposed: China Bypassed Billions in US Tariffs

The White House released a report accusing over 40 countries of helping China bypass US tariffs. Through a practice known as "transshipping," Beijing has evaded tens of billions of dollars in duties, causing significant harm to the American economy.

Source
Massive Fraud Exposed: China Bypassed Billions in US Tariffs
Photo: Now14 / טראמפ ונשיא סין | צילום: הבית הלבן

The White House published a report on Thursday accusing over 40 countries of assisting China in bypassing American tariffs. According to the document, these nations helped China route exports through countries with lower tariff rates, thereby evading the payment of tens of billions of dollars. This maneuver, known as "transshipping," severely harms the US economy.

Among the countries mentioned in the report are Canada, India, Mexico, Japan, and South Korea. Peter Navarro, the White House trade advisor, stated that this practice has cost the nation "American jobs and billions of dollars in revenue." A spokesperson for the Chinese embassy in Washington responded by stating:

"There are no winners in trade wars," adding that China opposes the US tariff policy.

The report describes how China uses third-party countries as transit points, repackages goods, and hides their true origin to obtain lower tariffs, labeling the practice as "fraud wrapped in paperwork." The US has even deployed artificial intelligence tools to detect transshipping attempts. The report is expected to heighten tensions ahead of the meeting between US President Donald Trump and Chinese leader Xi Jinping in September.

US President Donald Trump has previously implemented sweeping tariffs on dozens of trading partners, believing that such measures would help boost American jobs and the economy. Although some of these sanctions were overturned by the US Supreme Court, the President has continued to introduce new tariffs using alternative legal levers as part of his distinct policy.

Related News