Key facts
- The Trump White House estimates annual U.S. tax revenue loss from tariff evasion between $19 billion and $26 billion.
- Countries are evading U.S. tariffs by routing exports through third nations.
- This practice is known as transshipping.
- China is specifically cited for using transshipping to grow its manufacturing sector.
- The U.S. Department of Commerce accuses Chinese exporters of orchestrating a large-scale scheme to evade tariffs.
- The scheme is referred to as the 'Great Transshipment Scam'.
- The scam involves mislabeling products to avoid duties.
The Trump White House has reported that countries are evading U.S. tariffs by routing exports through third nations, a practice known as transshipping. This scheme is estimated to cause an annual loss of $19 billion to $26 billion in U.S. tax revenue. China is specifically identified as a country utilizing transshipping to continue expanding its manufacturing sector.