White House Report Accuses China of Transshipment Scam Evading U.S. Tariffs

The White House released a report on August 13, 2026, accusing China of orchestrating a vast "transshipment scam" involving more than 40 countries to evade U.S. tariffs, a practice officials say has cost American jobs and billions in federal revenue. The report, titled "The Great Transshipment Scam," was issued by Peter Navarro, the top trade adviser to President Donald Trump, and outlines how Chinese goods are routed through third nations to conceal their origin before entering the United States.

According to the report, the practice involves Chinese manufacturers sending products to countries with lower tariffs or favorable trade agreements, where they undergo light processing, relabeling, repackaging, or reinvoicing. This creates the appearance of a different country of origin while the goods remain largely Chinese in content. The report states this has allowed China to "launder its exports" through a network of nations, draining tens of billions of dollars from the U.S. Treasury and displacing an estimated 450,000 American jobs.

The list of accused countries includes major U.S. trading partners such as Mexico, Canada, Japan, South Korea, and members of the European Union, as...