US says dozens of countries helped China dodge Trump's tariffs

The White House has reported that over 40 countries have assisted China in bypassing US tariffs by routing exports through nations with lower international import duties. Countries such as Canada, India, Mexico, Japan, and South Korea have allegedly aided China in evading tens of billions of dollars in tariffs. White House trade adviser Peter Navarro claimed that this practice has cost American jobs and billions in revenue.

A Chinese embassy spokesperson in Washington stated that trade wars have no winners and opposed the US tariff measures and targeting China's companies using state power. The BBC has reached out to the US embassies of the listed countries for their comments. The report follows a series of sanctions between the US and China and precedes President Donald Trump's upcoming meeting with Chinese leader Xi Jinping in Washington.

Government and private sector estimates suggest that between $30bn and $300bn in goods have been transshipped from higher-tariff countries to lower-tariff nations. Transshipping refers to transferring cargo through another country while en route to its final destination. The US accused China of exploiting this practice by moving goods through nations with lower duties, describing it as "fraud cloaked in paperwork."

The White House highlighted that the scope, speed, and sophistication of this modern form of smuggling are unprecedented. The US has utilized artificial intelligence tools to detect transshipment activities. The report is anticipated to add to the contentious issues between the US and China as Trump and Xi prepare to meet in September.

Following a temporary pause in most tariffs, Washington and Beijing have continued to exchange sanctions, including restrictions on humanoid robots shipped to the US and tighter Chinese regulations on drone exports. In April 2025, Trump introduced broad levies on numerous US trading partners based on the belief that tariffs would boost American jobs and the economy, although these sanctions were later invalidated by the US Supreme Court.

However, Trump has repeatedly introduced new tariffs using alternative legal means to maintain his signature policy.