The United States has raised allegations against 38 countries and the European Union for participating in a “shadow transshipment network” that purportedly helps Chinese goods bypass hefty US tariffs by routing them through intermediary nations. A report entitled “The Great Transshipment Scam” suggests that this potentially unlawful activity is valued at around $60 billion and has led to substantial losses in US tariff revenue.
Among the countries and regions identified in the report are India, Canada, the European Union, Israel, Japan, Mexico, South Korea, Taiwan, Brazil, Indonesia, Malaysia, Thailand, Turkey, Vietnam, Argentina, Azerbaijan, Bangladesh, Cambodia, Chile, Colombia, Costa Rica, the Dominican Republic, Georgia, Jordan, Kazakhstan, Kenya, Laos, Morocco, Myanmar, Oman, Panama, Peru, the Philippines, Singapore, Sri Lanka, Switzerland, the UAE, and Uzbekistan. The document alleges that approximately $67 billion worth of goods headed to the US were rerouted from China through significant hubs like Mexico, India, and Vietnam in 2025, which might have resulted in about $28 billion in lost US tariff revenue.
The report brings particular attention to the Pune-Gujarat-Chennai corridor in India, asserting that it has facilitated the movement of Chinese products such as electric pumps and compressors. This has reportedly aided businesses within the corridor while simultaneously intensifying competitive pressures on American manufacturers.
In response to these findings, the US is contemplating various countermeasures, including more rigorous inspections and interdictions, the imposition of additional tariffs, the application of sanctions, and the potential restriction of market access for nations that enable tariff evasion.