US transshipment report targets Singapore and Sri Lanka trade practices

The United States has issued a report titled ‘The Great Transshipment Scam’, alleging that certain economies are being used by exporters to circumvent tariffs. The report identifies Singapore and Sri Lanka among various nations involved in transshipment practices that Washington claims may be used to disguise the true geographic origin of goods.

In response to these allegations, Singapore’s Ministry of Trade and Industry (MTI) emphasized that businesses must rigorously declare the exact origin of products and stated that the nation would take firm action against any violations of its laws. Washington plans to deploy an AI-driven automated border tool, ‘detective border’, to combat these potential diversions, which officials estimate could range between $40 billion and $303 billion annually.

In Sri Lanka, industry experts and analysts are urging the government to mount a coordinated response to the report. Stakeholders argue that the allegations misrepresent the legitimate role of the Colombo Port, a major maritime hub, and warn that failing to challenge the claims could damage investor confidence and the country’s economic recovery.