White House flags China-led tariff evasion scheme fueling billions in losses

A White House report, The Great Transshipment Scam, accuses China of leading a global scheme that routes goods through intermediary countries to dodge tariffs, costing the U.S. up to $26B a year in tariff revenue (with estimates from $19B–$26B) and valuing avoided transshipments at roughly $34.2B–$303B annually; more than 40 countries are flagged as high risk, retroactive tariffs can apply for misreported origins, and CBP says it is using AI to detect transshipment ahead of Xi Jinping’s Washington visit.