The United States has leveled accusations against 38 countries and the European Union, claiming they are involved in a “shadow transshipment network” that facilitates the entry of Chinese goods into the U.S. market, bypassing high tariffs through intermediary nations. This controversial practice is detailed in a report titled “The Great Transshipment Scam,” which estimates the potential value of these transshipped goods at around $60 billion, leading to significant losses in U.S. tariff revenues.
The list of implicated countries and territories is extensive, featuring names such as India, Canada, the European Union, Israel, Japan, and Mexico, alongside others like South Korea, Taiwan, Brazil, Indonesia, and Malaysia. Thailand, Turkey, Vietnam, and Argentina are also mentioned, along with Azerbaijan, Bangladesh, Cambodia, and several other nations across different continents. The report suggests that these regions play a role in facilitating the movement of goods, effectively undermining U.S. trade policies.
Notably, the report indicates that in 2025, approximately $67 billion worth of goods destined for the U.S. were allegedly rerouted via major hubs, including Mexico, India, and Vietnam. This practice could account for an estimated $28 billion in lost tariff revenue for the U.S., emphasizing the scale and impact of these activities. The Pune-Gujarat-Chennai corridor in India is particularly highlighted, where Chinese shipments are said to bolster local businesses by supplying products such as electric pumps and compressors, thereby intensifying competition for American manufacturers.
In response to these findings, the U.S. is considering a series of measures aimed at curbing these transshipment activities. Proposed actions include heightened inspections, increased tariffs, sanctions, and potentially restricting market access for countries that are perceived to aid in tariff evasion. These steps are intended to safeguard U.S. economic interests and ensure that tariff policies are effectively enforced, thereby protecting domestic industries from unfair competition.