White House accuses Malaysia, Indonesia of helping China evade US tariffs
MALAYSIA and Indonesia have been accused by the White House of being among more than 40 countries allegedly used by China to circumvent high United States tariffs by routing goods through countries with lower import duties before they enter the US ma...
The White House has accused Malaysia and Indonesia of collaborating with China to circumvent higher tariffs by routing exports through third countries, according to a 24-page report titled "The Great Transshipment Scam." The allegations accuse China of systematically redirecting goods through countries with lower import duties before they reach the US market.
The report identifies over 40 countries, including Malaysia, Indonesia, Canada, Mexico, and Japan, as potential players in the scheme. White House Director Peter Navarro accused China of developing sophisticated methods to launder its exports through more than 40 countries. The alleged method involves relabelling the country of origin, even when goods or their components originate in China.
The report singles out Indonesia's Batam-Bekasi corridor as a key center of the alleged transshipment network. The practice is estimated to cost the US tens of billions of dollars in tariff revenue annually. The White House is employing technology, including an AI-based system called "Border Detective," to detect potential tariff evasion. However, Indonesia has not yet responded to the accusations.
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