White House Alleges Dozens of Nations Help China Evade US Tariffs in Multi-Billion Dollar Scheme

Cargo containers are lined up on a ship at the Port of Oakland, in Oakland, California, on August 6, 2025.

The administration of US President Donald Trump has accused dozens of nations of assisting China in illegally dodging United States tariffs, resulting in the loss of tens of billions of dollars in annual government revenue. A report published on Thursday by the White House claims that over 40 countries have participated in a shadow logistics network that brings Chinese goods into the US under false labelling.

The Office of Trade and Manufacturing Policy identified the European Union, Mexico, Canada, India, Japan, and South Korea as China’s primary enablers in what it termed the “Great Transshipment Scam.” Southeast Asian nations, including Indonesia, Thailand, Malaysia, and Cambodia, also contribute significantly to the network, according to the trade policy office.

US manufacturing industries suffering the most from these transshipments include electrical equipment, integrated circuits, aluminium products, and motor components. Peter Navarro, a Trump appointee heading the office, stated in the report that every dollar lost to this scheme represents funds stolen from American workers, manufacturers, and taxpayers.

The Chinese embassy in Washington, DC, did not immediately reply to requests for comment outside of normal office hours, and the dozens of named countries have yet to publicly address the accusations. Warning that participating countries are now on notice, the White House announced that border authorities are utilizing artificial intelligence to integrate shipment data as part of enhanced enforcement measures.

The trade office emphasized that the era of untraceable illegal transshipments has concluded, noting that actions previously viewed as simple paperwork maneuvers have escalated into issues of economic sovereignty and national will.

Since returning to the White House in January last year, US President Donald Trump has disrupted global trade through numerous protectionist measures. In a recent trade action, the Trump administration placed levies of 10-12.5 percent on imports from various countries accused of ignoring forced labour.

Meanwhile, a coalition of 25 Democratic-led US states—including New York, California, and Colorado—has filed a legal challenge against the tariffs, arguing the policies serve as a pretext to revive Trump's sweeping “Liberation Day” duties, which were invalidated by the US Supreme Court in February.

Amitendu Palit, a trade expert and professor at the National University of Singapore, described the White House report as another attempt by the Trump administration to pressure nations into granting broader market access for US goods. Palit told Al Jazeera that the legal setback regarding the liberation day tariffs caused substantial financial and credibility losses for the administration, driving it to pursue innovative strategies to weaponize market access following earlier Section 301 tariffs.