White House says it’s losing $19B-$26B a year in revenue as countries dodge tariffs

The White House has reported that the US is losing between $19 billion and $26 billion in annual tariff revenue due to goods, largely from China, being transshipped through third countries to avoid US import duties. According to White House trade adviser Peter Navarro, China is laundering its exports through over 40 countries, including major US trading partners such as Mexico, Canada, the European Union, India, Japan, and South Korea.

The report by Navarro estimates that the value of transshipped goods ranges from $34 billion to $303 billion per year, with a central case estimate of $75 billion. This results in the loss of $19 billion to $26 billion in import taxes. The report suggests that routing Chinese products through certain countries, such as Mexico or Canada, could eliminate duties entirely.

The Chinese embassy in Washington has responded, stating that it opposes any party seeking to strike a deal at China's expense or disrupt industrial supply chains. The embassy spokesperson said that China will take necessary measures to safeguard its legitimate rights and interests if such situations arise.

Brief written by urgent.news from Euronews, Live Mint, NPR, Investing.com, CoinDesk — 5 reports on this story. Machine-written — it may contain errors, so check the original before relying on it.