According to a White House report released Thursday (August 13), the Trump administration accused China of evading U.S. tariffs through transshipment via over 40 countries, costing the U.S. government between $19 billion and $26 billion annually in lost tariff revenue. The report detailed how Chinese enterprises route goods through Mexico, Malaysia, Taiwan and other nations, performing minimal packaging or assembly before exporting them as third-country products to the U.S., a practice known as illegal transshipment. White House trade advisor Peter Navarro stated the scheme allows China to disguise the true origin of exported goods while maintaining domestic manufacturing growth. To counter this, the Trump administration plans to incorporate anti-transshipment provisions into future trade agreements and deploy artificial intelligence technology through U.S. Customs and Border Protection to identify suspicious trade patterns and cargo flows.
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