US accuses more than 40 countries of helping China avoid Trump’s tariffs

The Trump White House has released a report revealing that countries are evading U.S. tariffs by transshipping exports through third nations, resulting in annual revenue losses of $19 billion to $26 billion. China, in particular, has been accused of sending goods to various countries like Mexico and Malaysia for packaging and limited assembly, a strategy designed to maintain the growth of its manufacturing sector and challenge American factories and employment.

White House Trade Counsel Peter Navarro stated that China is utilizing over 40 countries to launder its exports, though he emphasized that the primary issue is nations enabling tariff avoidance. The report arrives before Chinese President Xi Jinping's scheduled visit to the U.S. in September, a time when Trump had praised China's "strategic stability."

Navarro warned that other countries, including India, might also engage in transshipping to circumvent new tariffs, and the Trump administration is planning to include provisions in upcoming trade frameworks to penalize nations engaging in this practice.