The United States has leveled accusations against 38 countries and the European Union for their involvement in a “shadow transshipment network” that purportedly enables Chinese products, which are subject to steep U.S. tariffs, to enter the American market via third-party nations. This claim is detailed in a report titled “The Great Transshipment Scam,” which suggests that the alleged transshipment activities could have a financial impact of approximately $60 billion, leading to notable losses in U.S. tariff revenue.
The report names a diverse roster of countries and territories purportedly participating in this network. Among them are India, Canada, the European Union, Israel, Japan, Mexico, South Korea, Taiwan, Brazil, Indonesia, Malaysia, Thailand, Turkey, Vietnam, and several others, including Argentina, Azerbaijan, Bangladesh, Cambodia, and Chile. The alleged activities also encompass Costa Rica, the Dominican Republic, Georgia, Jordan, Kazakhstan, Kenya, Laos, Morocco, Myanmar, Oman, Panama, Peru, the Philippines, Singapore, Sri Lanka, Switzerland, the UAE, and Uzbekistan.
An analysis within the report claims that in 2025, goods valued at $67 billion, bound for the United States, were allegedly transshipped from China through key hubs such as Mexico, India, and Vietnam. This maneuver is estimated to have cost the U.S. approximately $28 billion in lost tariff revenue. The document points out the Pune-Gujarat-Chennai corridor in India as a significant route, noting that Chinese shipments of items like electric pumps and compressors have bolstered businesses in the area while simultaneously increasing competitive pressure on American manufacturers.
In response to these findings, the U.S. is considering implementing a series of countermeasures. Proposed strategies include more rigorous inspections and interdictions, the imposition of additional tariffs, sanctions, and potentially restricting market access for countries that are found to be aiding in tariff evasion. These steps are aimed at mitigating the financial impact and safeguarding U.S. economic interests.