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

The White House released a report on Thursday stating that over 40 countries, including Canada, India, Mexico, Japan, and South Korea, have assisted China in bypassing US tariffs by routing exports through nations with lower American import duties. The countries named by the White House have allegedly helped China evade tens of billions of dollars in tariffs, impacting American jobs and revenue.

White House trade adviser Peter Navarro claimed that this practice has cost American jobs and billions in revenue. A spokesperson for the Chinese embassy in Washington called for an end to trade wars and condemned the use of state power to target China's companies, arguing that any unilateral actions concerning transshipped goods should not harm third parties.

The report follows a series of sanctions between the US and China and precedes a meeting between US President Donald Trump and Chinese leader Xi Jinping in Washington. The US estimates that between $30bn and $300bn worth of goods have moved from countries with higher tariffs through countries with lower rates. This practice, known as transshipping, involves transferring cargo through another country while en route to the final destination.

China has repackaged goods to hide their true origin, the White House claims, describing it as "fraud cloaked in paperwork". The US has used AI tools to detect transshipment attempts. The report is expected to heighten tensions between the US and China as they prepare for their September meeting.