The United States has leveled accusations against 38 countries and the European Union, alleging their involvement in a “shadow transshipment network” that facilitates the entry of Chinese goods into the US market, bypassing hefty tariffs. This claim is detailed in a report known as “The Great Transshipment Scam,” which estimates the value of this potentially illicit activity at approximately $60 billion. The report suggests that this network has led to significant losses in US tariff revenue.
Among the countries and territories implicated in the report are India, Canada, the European Union, Israel, Japan, and Mexico. Others named include South Korea, Taiwan, Brazil, Indonesia, Malaysia, Thailand, Turkey, Vietnam, and Argentina. Further, the list extends to 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 report highlights that around $67 billion worth of goods destined for the US were allegedly rerouted from China via significant hubs such as Mexico, India, and Vietnam in 2025. This activity is believed to have caused a loss of approximately $28 billion in US tariff revenue. Specific mention is made of the Pune-Gujarat-Chennai corridor in India, where Chinese shipments, including items like electric pumps and compressors, are said to have bolstered local businesses while intensifying competition for US manufacturers.
In response to these findings, the US is considering implementing stricter inspections and interdiction measures. The proposed actions also include levying additional tariffs, imposing sanctions, and potentially restricting market access for nations that are found to be facilitating tariff evasion.