US flags India in $67 bn China transshipment claim

The United States has accused India of being a hub for Chinese tariff evasion, estimating that $67 billion worth of goods passed through Indian ports in 2025. However, the White House report does not specify India's exact share or identify any specific Indian exporters or shipments involved in tariff fraud, according to the Global Trade Research Initiative (GTRI).

The report, titled "The Great Transshipment Scam: Rise, Scope, and Costs," was released on August 13 and accuses exporters of routing goods through over 40 countries to evade US tariffs. India has been placed in the Tier 1 category of countries with elevated transshipment risk. The White House report highlights the Pune-Gujarat-Chennai manufacturing corridor in relation to pumps and compressors under HS codes 8413 and 8414.

Despite the report's claims, GTRI argues that aggregate trade data do not establish widespread rerouting of Chinese goods through India, Mexico, and Vietnam. The think tank emphasizes that India's established manufacturing capabilities and exports demonstrate genuine production, and that Chinese inputs do not automatically make a product Chinese.