The White House released a report detailing the challenges presented by the illegal transshipment of goods through third countries to evade tariffs. The report, called “The Great Transshipment Scam,” discusses the “more than 40 countries associated with elevated illegal transshipment risk.”
“President Trump’s tariff actions have helped to protect U.S. workers and industry, and his Administration has taken stronger actions against countries that pose larger economic challenges. However, the expansion of differentiated tariffs in 2025 has significantly increased the importance of effective transshipment enforcement,” the report says. “Tariff differentials are necessary to address differences in trading practices and levels of reciprocity, but they also create opportunities for arbitrage and evasion. Any higher-tariff country may seek access to the U.S. market through a lower-tariff country, and any lower-tariff jurisdiction may benefit from serving as a production, processing, warehousing, or logistics intermediary for higher-tariff countries.”
China was called out as having a history of such conduct. “Products that previously moved directly from China to the United States were shipped through jurisdictions where limited assembly, finishing, repackaging, relabeling, or documentation changes could create the appearance of a different national origin,” the report explains. “Over time, these practices contributed to the development of a global network of production hubs, logistics platforms, free-trade zones, bonded warehouses, processing corridors, and re-export centers.”
Peter Navarro, senior counselor for trade and manufacturing, told reporters that the report, “For years the great transshipment scam has led communist China to launder its exports to more than 40 countries, rob our treasury of tens of billions of dollars, and steal the paychecks of American workers.” He added that the report “rips the mask off” of such practices.
Treasury Secretary Scott Bessent hailed President Trump’s policies combatting the practice, saying, “Illegal transshipment is not just a technical customs violation, it is a deliberate effort to evade U.S. tariffs, undercut American workers and manufacturers, and deprive the American people of billions of dollars in revenue. President Trump is pairing strong trade policy with strong enforcement to ensure that goods entering the United States pay the duties they owe.”
