US accuses Chinese exporters of masterminding ‘Great Transshipment Scam’

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US-China trade warUSUS accuses Chinese exporters of masterminding ‘Great Transshipment Scam’White House alleges that companies are systematically routing trade through third-party nations to evade US tariffs4-MIN READ4-MIN19 Nayan Sethin WashingtonPublished: 6:45pm, 13 Aug 2026Updated: 7:15am, 14 Aug 2026The Trump administration on Thursday released a sharply worded report accusing Chinese exporters of orchestrating a system of “illegal transshipment” through more than 40 third countries to dodge US tariffs, branding the practice “The Great Transshipment Scam”.The 25-page document claims Chinese firms have systematically diverted goods through lower-tariff jurisdictions since the US kicked off its trade war with China in 2018.It alleges that exporters use limited assembly, relabelling, repackaging, re-invoicing and false country-of-origin declarations to disguise Chinese-origin products and secure more favourable tariff treatment on entry into the US.The White House report says that Chinese exporters have “increasingly routed goods through third countries … where limited assembly, finishing, repackaging, relabelling or documentation changes could create the appearance of a different national origin.”1xAI-generated voice

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