Key facts
- The U.S. administration has identified South Korea, Japan, Taiwan, and the EU as countries facing transshipment risks involving China-linked products.
- A White House report titled "The Great Transshipment Scam" identified about 40 countries with "elevated" risks.
- Chinese exporters are accused of routing goods through third countries using methods such as relabeling and false country-of-origin claims to evade U.S. tariffs.
- The U.S. is developing an AI-powered "detective border" to identify high-risk shipments.
- South Korea, Japan, Taiwan, and the EU were classified as "diversified scale leaders" in this context.
The U.S. administration has identified South Korea, Japan, Taiwan, and the European Union among dozens of economies facing transshipment risks involving China-linked products, according to a White House report released Thursday. The report, titled "The Great Transshipment Scam," aims to tackle schemes used to evade U.S. tariffs and other trade remedies.
The report identified approximately 40 countries associated with "elevated" transshipment risks, detailing how Chinese exporters route goods through third countries by methods such as relabeling, repackaging, and making false country-of-origin claims. The White House is developing a "detective border" utilizing artificial intelligence to integrate shipment data and identify high-risk shipments for duty collection and other measures.
South Korea, Japan, Taiwan, and the EU were classified as "diversified scale leaders," noted for their diversified industrial bases and major U.S.-bound export platforms where transshipment risk is embedded within legitimate trade flows. Other countries were categorized based on their economic integration with China-linked supply chains and their role as potential hubs for rerouting goods.