Malaysia among US trade partners flagged as risks for aiding tariff evasion

The Trump administration has identified dozens of US trading partners, including major nations such as the EU, Taiwan, Mexico, and Canada, as potential risks for aiding Chinese tariff evasion. Among the list is Malaysia, which has been flagged for its role in illegal transshipment practices. White House trade advisor Peter Navarro explained that these countries pose risks due to their involvement in transshipment, a method where goods are sent through third countries with lower US tariffs to avoid higher levies.

This issue has been a longstanding concern for the US, as Communist China has been using more than 40 countries to launder its exports. Navarro also announced that the administration is working with Customs and Border Protection on an AI-enabled "detective border" system to help detect illegal practices in shipments. This new system will utilize various data points, including shipment information and routing histories, to identify potential transshipment risks.