India, Israel and more: Full list of countries US named in ‘shadow transhipment network’ helping China evade tariffs

Nearly four dozen countries, including India, are accused by the United States of participating in a "shadow transhipment network" that enabled Chinese goods subject to high US tariffs to enter the American market via third countries with lower tariffs, according to a report titled "The Great Transhipment Scam." The report estimates the value of illegal transhipment at around 60 billion US dollars, resulting in tens of billions of dollars in lost tariff revenue for the US government.

Proposed actions against participating countries include immediate interdiction, penalty tariffs, sanctions, and potential loss of access to the US market. The report highlights that approximately 67 billion US dollars in goods bound for the US were transshipped from China through Mexico, India, and Vietnam in 2025, resulting in an estimated 28 billion US dollars in lost tariff revenue.

The report suggests that allowing US goods to enter the Chinese market at lower tariff rates has benefited certain corridors within India, such as the Pune-Gujarat-Chennai corridor, at the expense of American manufacturers in cities like Cincinnati, Dayton, and Columbus in Ohio.