White House reports $19B-$26B annual revenue loss from Chinese tariff evasion

transshipment tariff evasion trade policy U.S. revenue loss China exports

The Trump White House has released a report alleging that China is utilizing transshipment to bypass U.S. tariffs, routing goods through more than 40 third-party countries for packaging and assembly. This practice, which includes nations such as Mexico, Malaysia, India, Canada, and Japan, is estimated to cause the United States between $19 billion and $26 billion in annual tax revenue losses.

White House trade adviser Peter Navarro described the activity as a “great transshipment scam” that allows China to continue expanding its manufacturing sector while appearing to reduce direct exports to the U.S. The report notes that the value of goods being rerouted is estimated to range from $34.2 billion to as high as $303 billion annually.

In response, the administration indicated that future trade frameworks will include provisions to penalize partner nations that facilitate such evasion. The report arrives ahead of a scheduled visit by Chinese leader Xi Jinping to the United States in September.

Entities

China · Donald Trump · Peter Navarro · Trump administration · United States · White House · Xi Jinping

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 7 SOURCES] The Trump administration plans to include penalties for trade partners that facilitate tariff evasion. almanartv.com.lb · dev.tnonline.com.br · wtop.com · almanar.com.lb · www.bangordailynews.com · +2 more
[● 7 SOURCES] The White House estimates annual tax revenue losses of $19 billion to $26 billion due to tariff evasion. almanartv.com.lb · dev.tnonline.com.br · wtop.com · almanar.com.lb · www.bangordailynews.com · +2 more
[● 7 SOURCES] China is routing exports through more than 40 countries to avoid U.S. tariffs. almanartv.com.lb · dev.tnonline.com.br · wtop.com · almanar.com.lb · www.bangordailynews.com · +2 more
[● 7 SOURCES] Annual transshipped goods are estimated to be worth between $34.2 billion and $303 billion. almanartv.com.lb · dev.tnonline.com.br · wtop.com · almanar.com.lb · www.bangordailynews.com · +2 more
[○ 1 SOURCE] Countries including India, Canada, Mexico, and Japan have been identified as facilitating transshipment. www.timesnownews.com